Dark Pool Pulse - Volume Pressure Oscillator

Dark Pool Pulse – Volume Pressure Oscillator

Description

OVERVIEW

Dark Pool Pulse is a protected technical analysis oscillator designed to visualize changes in directional volume pressure over time. The indicator transforms cumulative buying and selling activity into a normalized oscillator to help traders contextualize periods of relative market stability versus expansion.

The script is intended as a market condition visualization tool, not a signal generator.

CORE CONCEPT

The indicator evaluates the balance between buying and selling volume by tracking cumulative directional pressure. This pressure is used as a proxy for broader liquidity behavior, allowing traders to assess whether price action is occurring in a relatively stable environment or during periods of accelerating participation.

Rather than focusing on individual candles, the oscillator emphasizes persistence of volume imbalance across a rolling window.

CALCULATION FRAMEWORK

Directional Volume Pressure
The script measures the difference between buying and selling volume on each bar and accumulates this value over time to form a Net Pressure series.

Normalization Process
To make pressure comparable across symbols and timeframes, the cumulative series is normalized using a dynamic lookback window. This process scales the output to a bounded range between 0 and 100.

Oscillator Construction
The normalized pressure value is plotted as a single oscillator, allowing traders to observe shifts in participation intensity rather than raw volume magnitude.

INTERPRETING THE OSCILLATOR

60–100: Relative Stability
Indicates sustained volume balance and slower pressure changes, often associated with consolidation or mean-reverting conditions.

0–40: Relative Expansion
Indicates persistent directional pressure, often associated with momentum-driven or higher-volatility environments.

These zones are contextual references, not predictive thresholds.

DESIGN INTENT & LIMITATIONS

Dark Pool Pulse does not identify specific participants, venues, or transactions. It does not measure actual dark pool activity and should not be interpreted as such. All calculations are derived solely from publicly available price and volume data.

The script does not generate trade signals, alerts, or execution guidance.

SOURCE & DISCLAIMER

Published as a protected script to preserve the specific normalization techniques used in the pressure calculations.
This indicator is provided for educational and analytical purposes only and should be used alongside other forms of technical analysis.