Market Order Bubbles

Market Order Bubbles is a streamlined, volume-driven overlay indicator designed to spotlight sudden spikes in trading activity, highlighting potential shifts in market momentum.

By detecting deviations in volume from its recent average, it plots intuitive bubble markers to reveal aggressive order flows—ideal for traders seeking early warnings of exhaustion or reversal setups in fast-moving markets.

What makes this indicator different
This indicator draws inspiration from established volume analysis tools but stands out with a refined, lightweight approach. Unlike more complex models that layer multiple filters or emulate cumulative metrics, it leverages a weighted moving average (WMA) of volume paired with statistical deviation for a direct, responsive measure of "surge intensity."

This results in cleaner signals with less noise, making it particularly suited for intraday scalpers or swing traders who value simplicity without sacrificing depth. The focus on excess volume relative to a dynamic baseline ensures bubbles only emerge during truly anomalous activity, setting it apart from generic volume oscillators or basic footprint indicators that often flood charts with irrelevant data.

Core Mechanics
At its heart, the indicator computes a smoothed volume baseline using a WMA over a user-defined period, then applies a volatility-adjusted threshold derived from the standard deviation of that same period. A "surge" triggers when actual volume exceeds this baseline plus the threshold, with the excess amount determining bubble size. Price direction (bullish or bearish close) classifies the surge as buying or selling pressure:

Buy Surges (plotted as blue bubbles above the bar): Indicate potential overextension in upward moves.
Sell Surges (plotted as red bubbles below the bar): Flag possible downside fatigue.

Bubble opacity and size scale with surge magnitude—fainter, smaller bubbles for mild excesses; bolder, larger ones for extreme outliers—providing a visual gradient of intensity at a glance.

How to use this tool:

Use this tool as a contrarian edge to anticipate potential pullbacks or reversals, rather than chasing the trend. Large clusters of buy bubbles during a rally could signal "capitulation" from late entrants or forced covers, priming the market for a downside move. Conversely, sell bubbles in a downward move can mark bottoming exhaustion, cueing possible upside bounces.

For best results:

Confluence: Pair with price action, momentum indicators, or other orderflow tools.
Timeframe Flexibility: Excels on low timeframe for day trading; scale up to hourly for swings.

Treat bubbles as filters, not standalone signals—always confirm with broader context.
In essence bubbles don't predict direction but can illuminate when the crowd's aggression might soon flip.

Bubble Sizing and Interpretation

Bubbles are tiered by surge strength for quick assessment:
Small Bubbles: Minor excess — a little more pressure on volume.
Medium Bubbles: Notable excess — moderate alert.
Large Bubbles: Major excess — high-impact event.

Customizing Settings

The indicator keeps things minimal with just two changeable inputs, highlighting quick tweaks without overwhelming options.

WMA Length (default: 100): Controls the lookback for the volume baseline. Increase for smoother, less reactive signals (fewer but more reliable bubbles in volatile assets). Decrease for heightened sensitivity (more frequent alerts in choppy sessions).

Threshold Multiplier (default: 1.5): Scales the deviation buffer. Higher values tighten criteria, reducing bubble frequency for more conservative filtering; lower values loosen it, capturing subtler surges but risking more noise.

These adjustments let traders dial in the indicator to their style.