AMT Taper Volume
Exhaustion detection via declining volume at bar extremes
Detects exhaustion patterns by identifying strictly declining volume approaching bar extremes on the footprint. When volume tapers off at the high (or low), it signals that aggressive participants are losing conviction at the extreme — a classic exhaustion pattern.
The Concept
When price pushes to a bar's high, you expect buying conviction to be strongest at the extreme if the move has more room to go. If instead participation fades as price approaches the extreme, buyers are running out of steam. Taper Volume detects this footprint-based exhaustion pattern — weakening commitment at the edges of a bar that often precedes a reversal. It works the same way at bar lows for sell exhaustion.
How to Read It
Dots appear at bar extremes where volume tapering is detected.
- Red dot at a bar high = sell exhaustion — volume tapered approaching the top, sellers may step in
- Green dot at a bar low = buy exhaustion — volume tapered approaching the bottom, buyers may step in
- Multiple taper signals in a cluster strengthen the exhaustion thesis
- Taper at a key level (session high, balance, VWAP band) is higher conviction
Practical Tips
The sensitivity inputs control how strict the exhaustion detection is — higher values require stronger evidence but produce fewer signals. The 'Require Zero at Extreme' option adds an additional filter for complete participation dropout at the bar's edge. Min Bar Range filters out narrow bars where the signal is meaningless.
Requirements
- Requires 'Maintain Volume at Price Data' enabled on the chart
Input & Settings
| No. | Input Name | Function |
|---|---|---|
| 1 | Min Tapering Levels | Number of consecutive price levels with strictly declining volume required. Default: 3. Range: 2–10. |
| 2 | Min Bar Range (Ticks) | Minimum bar range in ticks before evaluating for taper. Filters doji bars. Default: 5. Range: 1–100. |
| 3 | Require Zero at Extreme | When enabled, the outermost price level must have zero volume on the tapering side. Default: Yes. |
Number of consecutive price levels with strictly declining volume required. Default: 3. Range: 2–10.
Minimum bar range in ticks before evaluating for taper. Filters doji bars. Default: 5. Range: 1–100.
When enabled, the outermost price level must have zero volume on the tapering side. Default: Yes.
Subgraphs
| No. | Subgraph Name | Function & Comments |
|---|---|---|
| 1 | Sell Exhaustion | Default: Point On High. Red dot at bar highs where volume tapers approaching the top. |
| 2 | Buy Exhaustion | Default: Point On Low. Green dot at bar lows where volume tapers approaching the bottom. |
Default: Point On High. Red dot at bar highs where volume tapers approaching the top.
Default: Point On Low. Green dot at bar lows where volume tapers approaching the bottom.
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