Dark Pool Estimate Signal Tracker

Dark Pool Signal— Detect Potential Institutional Activity

Overview
The Dark Pool Signal v1.6 indicator is a technical analysis tool designed to identify potential institutional activity by interpreting the relationship between volume, price action, and key benchmarks. It specifically targets moments of high-volume trading near the VWAP, which may suggest hidden accumulation or distribution often associated with dark pool transactions.

Instead of being a simple mashup of existing indicators, this script's core value lies in how it synergizes these components to filter out market noise and highlight statistically significant events that may otherwise go unnoticed.

Disclaimer: This script is for informational and educational purposes only. It does not constitute financial advice or a recommendation to buy or sell any asset. All trading involves risk. Past performance is not indicative of future results.

🔍 Core Logic & Calculation Concepts
This script's engine operates on a multi-stage filtering process to generate signals. The underlying concept is that institutional orders, often executed algorithmically, tend to appear as volume spikes that do not cause immediate, proportional price moves, and frequently occur near an institutional benchmark like the VWAP.

Here is a conceptual breakdown of how a signal is generated:

Volume Anomaly Detection: First, the script establishes a baseline for "normal" volume by calculating a Simple Moving Average (SMA) of volume over a specific lookback period. A "Volume Spike" is identified when the current bar's volume exceeds this baseline by a user-defined multiplier (e.g., 2.5x). This serves as the initial trigger for a potential event.

Price Action Context (VWAP Proximity): A volume spike alone is insufficient. To qualify as a potential institutional trade, the script verifies if this spike occurred while the price was trading closely to the VWAP. This "proximity" is not a fixed value; it's a dynamic channel around the VWAP calculated using the Average True Range (ATR). This intelligent filter helps distinguish potential dark pool prints from standard high-volume breakouts that move sharply away from the VWAP.

Directional Bias (Trend Filter): Once a high-volume event near the VWAP is confirmed, the script assigns a directional bias (Buy or Sell). This is achieved by referencing a short-term Exponential Moving Average (EMA).

If the event occurs while the price is above the EMA, it is flagged as a potential Buy Signal (Accumulation).

If the event occurs while the price is below the EMA, it is flagged as a potential Sell Signal (Distribution).

Signal Strength Assessment: Signals are categorized for better interpretation. A "Strong" signal is triggered if the volume spike is exceptionally large (e.g., >4x the average). An "Accumulated" signal appears when multiple regular signals occur within a short user-defined window, suggesting sustained institutional pressure.

By following this logical sequence, the indicator filters thousands of bars to present only those that meet the strict criteria for potential large-scale, off-exchange activity.

🧩 Features

Dynamic VWAP Range (ATR-based): Automatically adjusts VWAP proximity sensitivity based on current market volatility.

Multi-tiered Signal Strength: Differentiates between Normal, Strong, and Accumulated signals to visualize the intensity of activity.

Non-Repainting Confirmation: Signals are confirmed only on bar close to ensure they do not repaint.

Language Support: Dual-language display (English / Korean).

Customizable Visualization: Easily adjust label size, color transparency, offset, and the duration of highlighted zones.

Smart Alert System (v1.6): Provides comprehensive alert() and alertcondition() calls for real-time push notifications.

Recommended Timeframe Notice (v1.6): Displays a small on-chart note suggesting optimal timeframes for analysis.

🕒 Recommended Timeframes

Type Recommended Use Description
1-Hour (default) Primary Analysis Offers a good balance between signal clarity and noise reduction. Ideal for most equities and ETFs.
30-Minute Short-term Confirmation Useful for intraday analysis and refining entry/exit points.
Daily Macro View Helps identify long-term institutional positioning and potential trend reversal zones.
< 15-Minute Experimental May generate excessive noise due to market micro-volatility. Not recommended for primary analysis.

💡 Tip: Combine 1H detection with Daily chart confirmation for a more robust, dual-layer view of institutional flow.

📊 Visualization

Purple Diamonds: Strong or Normal Buy signals

Red Diamonds: Strong or Normal Sell signals

Translucent Boxes: Highlight the estimated duration of unusual activity.

Optional Labels: Display volume, VWAP delta, and signal strength for detailed analysis.

All visual components can be toggled on or off in the indicator settings.

⚙️ Alert System (v1.6)
You can create alerts for each specific signal type directly from the chart's alert menu.

⚡ Strong Buy/Sell

📡 Accumulated Buy/Sell

⬆️ Normal Buy/Sell

➖ Neutral Activity (Volume spike near VWAP without clear direction)

For confirmed, non-repainting signals, set the alert frequency to "Once Per Bar Close".

🧭 How to Use

Add the indicator to your chart.

Choose your preferred language and timeframe from the settings.

Customize visualization and alert preferences to your liking.

Observe how the combination of volume + VWAP + trend reveals potential accumulation or distribution zones.

Use alerts to monitor for significant institutional activity in real-time while you focus on other tasks.

🧠 Important Notes

This indicator is non-repainting. All signals are confirmed at the close of the bar.

It is intended for analytical and educational use, not as a stand-alone trading system.

The tool works across equities, ETFs, and crypto, but the reliability of volume data can vary by exchange. Always use this indicator as part of a comprehensive trading strategy that includes your own risk management.