Volume SMA (StevenCharts)

The Volume SMA (StevenCharts) is a streamlined volume analysis tool designed to help traders instantly identify significant market activity.

Standard volume bars can be noisy and difficult to interpret in isolation. This indicator normalizes volume relative to its recent average, highlighting only the bars that carry statistical significance. It separates "smart money" activity from retail noise by color-coding volume based on a user-defined threshold relative to the Moving Average.

How It Works
The indicator calculates a Simple Moving Average (SMA) of the volume (default 20 periods) and compares the current real-time volume against this baseline.

High Relative Volume: If the current volume exceeds the SMA by your set multiplier (e.g., 1.5x or 2.0x), the bar lights up in Green (for bullish closes) or Red (for bearish closes).

Low/Average Volume: If the volume is below the threshold, the bar remains Gray. This helps you ignore low-conviction price action.

Key Features
Threshold Filtering: Easily adjust the "Volume Multiplier" to define what you consider "high volume." Set it to 1.5 to spot bars with 150% of the average volume, or 2.0 for extreme outliers.

Visual Clarity: Automatically greys out insignificant volume, drawing your eye immediately to institutional activity.

Dual-Plot System: Displays standard volume bars alongside the SMA line for context.

Settings
Show Volume SMA: Toggles the blue SMA line on/off.

Volume SMA Length: The lookback period for the average (Default: 20).

Volume Multiplier Threshold: The factor required to trigger the colored highlight.

Example: Setting this to 1.0 means any volume above the average is colored. Setting it to 2.0 means only double-the-average volume is colored.