This indicator plots a Supertrend-based trend-following setup in a separate pane and skips conditions it treats as a sideways market. A volatility range is built from an ATR value, with RMA, SMA, EMA, or WMA smoothing, or from a fixed point distance. Optional
Indicator · Pine Script v5 · Own pane
VCP Volume Contraction
VCP Volume Contraction is an indicator designed to identify Volatility Contraction Pattern setups by measuring both volume and price volatility tightness.
GitHub stars1on the repository
Pine versionv5runs as is
Lines of code27
Settings2inputs
LicenceNone stated
Last update4 months ago12 Jun 2026
Add It to Your TradingView Chart
- 1Copy the scriptPress Copy script above. It reads the file straight from GitHub.
- 2Open the Pine EditorOpen a TradingView chart and choose Pine Editor at the bottom of the screen.
- 3Paste over the templateCreate a new indicator, select all of the template text and paste. Press Save and give it a name.
- 4Add it to the chartPress Add to chart, then adjust the settings with the gear icon next to its name.
Source Code
The code stays on GitHub. The author has not published this script under an open licence, so ForexR does not show its code. Copy script reads the file straight from GitHub into your clipboard, so you can still try it on your own chart. Ask the author before reusing the code anywhere else.
Overview
VCP Volume Contraction calculates a volume ratio by comparing current volume against its moving average, alongside an ATR-based range contraction check. When volume falls below 60 percent of its average and ATR drops below 70 percent of its short-term average, a VCP candidate signal triggers. Drawn in a separate pane, it displays the volume ratio line with threshold levels and highlights VCP zones with background shading. User settings allow adjusting the ATR and volume average lengths.
- Volume ratio calculation relative to SMA
- ATR volatility tightness detection
- Background highlighting for VCP setup zones
- Configurable ATR and volume moving average lengths
Details
Published by
kevinesk on GitHub
Type
Indicator, Pine Script v5
Draws
Separate pane below the chart
Category
Volatility & bands, Volume
Markets
Stocks
Timeframes
Any timeframe
Risk Notes
No repainting, lookahead or stacked entries were found in its code or README. That says nothing about how well it works: test it first.
Settings
The inputs you can change from the gear icon on the chart. Defaults are the author's.
| Setting | Type | Default | Variable |
|---|---|---|---|
| ATR Length | int | 10 | atr_len |
| Volume MA Length | int | 20 | vol_len |
Third-party code. ForexR did not write, test or endorse this script, and the summary above was generated automatically from its code and README. Indicators describe the past, and a strategy's backtest can look better than live trading, especially when a script repaints. Check it in the Strategy Tester and on a demo account before you rely on it.
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