Volume Climax Reversal (VCR) — Catch Exhaustion Tops & Bottoms

New! VCR spots exhaustion spikes at highs/lows using volume extremes + price action + VWAP context.
If you trade parabolic runners, indices, or mean-reversion edges, VCR helps you time the backside (shorts) and fade capitulation (longs) with clean, rule-based signals.

What it does

Detects volume climax: current volume > SMA(len) × multiplier and a new volume high in the lookback.

Confirms price context: makes a higher high (for tops) or lower low (for bottoms).

Filters with VWAP (optional): bearish signals only below VWAP, bullish signals only above VWAP.

Optional wick filter: requires an exhaustion wick > body to reduce chop.

Why traders like it

Clear entries: “VCR↓” (bearish) at exhaustion tops, “VCR↑” (bullish) at washout lows.

Fewer false signals: VWAP gating + wick filter focus on true climaxes.

Built-in alerts: set once, get notified on your phone/desktop when a setup appears.

How I trade it (simple playbook)

Bearish reversal (short / puts)

Wait for VCR↓ (exhaustion at/near HH).

Look for a lower high that fails to reclaim the signal candle high.

Enter on the break of that lower-high candle low.

Stop above the signal wick high.

Covers/targets: VWAP first; then 20–30% fade from the local top / prior demand.

Bullish reversal (long / calls)

Wait for VCR↑ (capitulation at/near LL).

Look for a higher low that holds above the signal candle low.

Enter on the break of the HL candle high.

Stop below the signal wick low.

Targets: VWAP first; then prior supply/MA bands.

Tip for small-cap/“Dux” style: VCR pairs perfectly with a gap + high USD-rotation scan. Let them blow off, then use VCR for the timing.

Inputs (tune to your market)

Volume SMA Length (default 20)

Volume Spike Multiplier (default 2.0)

Lookback High / Low (default 10 / 10)

Require VWAP confirmation? (on)

Use wick filter? (on)

Works on stocks, indices, futures, crypto.
Timeframes: 1–15m for day trading; 1h–4h–D for swing.

Alerts

Set one (or both) alerts and forget it:

Bearish Volume Climax — VCR↓

Bullish Volume Climax — VCR↑

You’ll get instant notifications when a qualified top/bottom prints.

Best practices

Don’t countertrend the first front-side ramp—wait for the VCR and a lower-high/higher-low.

Respect VWAP: it’s your first profit-taking and a bias filter.

Size small into volatility; widen stops in fast markets.

Combine with your watchlist filters (gap %, float/O/S, USD rotation, session timing).

What’s included

Clean visual signals (triangles + subtle background shading)

Session-anchored VWAP

Alert conditions that appear in TradingView’s alert menu

Sensible defaults + clear docs (this post)

FAQ

Q: Does it repaint?
No. VCR uses completed-bar data; signals print end-of-bar.

Q: Which markets?
Anything with volume: US equities, futures, crypto, indices.

Q: Can I use it for scalps?
Yes—1–5m with wick filter on and VWAP required works well.

Get more / upgrades

I’m iterating fast (MTF filter, heatmap panel, combined “one-alert” mode).
Want the pro template with dashboard & combined alerts? Message me on TV or DM [@your_handle] / email [e-mail]
.

Risk Notice

This is educational research, not financial advice. Markets carry risk—always manage position size and use stops.

If this helped you, smash the 👍 and ⭐ — it really helps!
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