Dark Pool Estimate Signal Tracker

Dark Pool Estimate Signal — Detect Potential Institutional Activity

Overview
The Dark Pool Signal v1.6 indicator is designed to detect unusual trading activity near VWAP zones, which can be associated with institutional dark pool transactions. By combining volume spikes, VWAP proximity, and optional trend filters, it provides clear visual cues of potential hidden accumulation or distribution zones.

Disclaimer: This script is for informational and educational purposes only. It does not constitute financial advice. All trading involves risk. Past performance is not indicative of future results.

🔍 Core Logic
This indicator identifies potential off-exchange activity by analyzing three key factors:

Unusual Volume Spikes: Highlights bars where the current volume significantly exceeds its moving average by a user-defined multiplier.

VWAP Proximity: Triggers when the price stays within a volatility-adjusted range (ATR-based) of the VWAP, a common characteristic of algorithmic execution.

Trend Confirmation: An optional EMA filter helps align signals with the broader market direction.

Accumulation Detection: Counts repeated signals within a lookback period to identify persistent institutional buying or selling pressure.

The result is a set of visual and alert signals indicating possible institutional footprints.

🧩 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 dark pool activity.

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

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

⚙️ Alert System
Create alerts for each specific signal type directly from the chart's alert menu or your script settings.

⚡ Strong Buy/Sell

📡 Accumulated Buy/Sell

⬆️ Normal Buy/Sell

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

Set alert frequency to Once Per Bar Close for confirmed, non-repainting signals.

🧭 How to Use

Add the indicator to your chart.

Select your preferred language and timeframe.

Customize visualization and alert settings to your preference.

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.

🧠 Important Notes

This indicator is non-repainting. Signals are confirmed at the close of each bar.

It is intended for analytical and educational use, not as a direct trading system.

It works across equities, ETFs, and crypto, but volume data reliability can vary by exchange. Always confirm signals with your own strategy and risk management.