Institutional Volume Indicator

Identifies large block trades and smart money activity

Overview

Institutional Volume Indicator identifies when large block trades (typically trades larger than historical average * multiplier) occur. Large blocks suggest institutional positioning and can precede significant price moves.

Key Use: Spot large institutional flows entering or exiting positions.

Key Concepts

Block Trade Threshold

Typically 5x-10x average bar volume; customizable

Accumulation Signal

Large volume on low price = institutional buying

Distribution Signal

Large volume on high price = institutional selling

Use Cases

Smart Money Detection

Large volume blocks often lead significant price moves.

Position Entry/Exit

Track when institutions add/reduce major positions.

Unusual Activity Alert

Block trades that deviate from normal patterns = watch closely.

Characteristics

✓ Advantages

  • • Direct institutional signal
  • • Clear block identifications
  • • Precedes major moves

⚠ Limitations

  • • Threshold parameter sensitive
  • • Varies by security liquidity
  • • Not all large volume = institutional

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