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Volume Expansion vs 20-Day Average

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This indicator compares the current bar’s volume with the average volume of the previous 20 periods.

It highlights moments of volume expansion, where trading activity exceeds its recent norm, often associated with increased participation, momentum, or institutional interest.

The indicator is designed to be used as a filter, not a standalone signal. It is particularly useful for confirming breakouts, momentum setups, or avoiding low-quality trades during low-liquidity conditions.

Volume thresholds can be adjusted to require a minimum multiple of the average volume, allowing traders to focus only on meaningful volume surges.

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