Institutional Volume Trend [Structure Filter]

Overview
The Institutional Volume Trend [Structure Filter] is a hybrid trend-following system designed to solve the single biggest problem in technical analysis: False Breakouts (Fakeouts).

Most trend indicators are purely price-reactive. If price moves up, they signal "Buy"—even if that move is driven by low liquidity and retail FOMO. This often leads to traders getting trapped in "chop" or weak reversals.

This script introduces a Volume-Verification Layer to market structure. It operates on a simple institutional premise: "Price advertises, Volume validates." A break of structure (BOS) is only considered a valid signal if it is backed by significant institutional volume.

Special thanks to the legendary Kıvanç Özbilgiç, whose extensive work on Supertrend and AlphaTrend concepts has paved the way for modern volatility-based trend systems. This script builds upon those foundational principles by adding a volume-weighted regime filter.

How It Works
This indicator combines two distinct engines to filter market noise:

1. Structure Engine (ATR Volatility):
   It uses an ATR-based trailing stop mechanism (inspired by the classic Supertrend logic) to detect the underlying market structure. This creates the "Floor" (Support) and "Ceiling" (Resistance) of the current trend.
   
   
2. Institutional Volume Filter:
   It calculates a relative volume average. If a trend change occurs without volume exceeding the average by a user-defined threshold (default 1.2x), the signal is flagged as Weak.
   

📖 Visual Guide: How to Interpret the Signs

This indicator communicates through Color and Labels. Here is exactly what each sign means:

1. The Ribbon Colors

• 🟢 Bright Green Ribbon: CONFIRMED BULLISH. Meaning: The trend is Up AND Volume is supporting the move.
  Action: Look for long entries or hold existing long positions.
  
  
• 🔴 Bright Red Ribbon: CONFIRMED BEARISH. Meaning: The trend is Down AND Selling pressure is high.
  Action: Look for short entries or hold existing short positions.
  
  
• ⚪ Gray / Dimmed Ribbon: WEAK / CHOP ZONE. Meaning: The price has broken structure, BUT there is no volume to back it up. The market is undecided or resting.
  Action: CAUTION. Do not open new trades. Wait for the color to turn Bright Green or Red.
  

2. The Labels

• 🏷️ "BOS + Vol" (Break of Structure + Volume):
• Meaning: A high-probability signal. Price broke the trend line with a burst of volume.
  
• Interpretation: This is your primary entry trigger.
  
  
• 🏷️ "Low Vol" (Small 'x' or Label):
• Meaning: Price crossed the line, but volume was weak.
  
• Interpretation: WARNING. This is likely a fakeout or a liquidity grab. Be very careful trusting this move.
  

3. The Trailing Line

• The solid line running along the price is your Dynamic Stop Loss.
  Bullish: As long as candles close above or touch (you choose) this line, the uptrend is valid.
  Bearish: As long as candles close below or touch (you choose) this line, the downtrend is valid.
  

How to Use This Indicator

For Trend Following (Swing Trading)

1. Wait for the Flip: Look for the ribbon to flip from Red to Green (or vice versa).
   
2. Check the Validation: Ensure the ribbon is Bright Green/Red and not Gray. A "BOS + Vol" label is your confirmation.
   
3. Set the Stop: Use the plotted Trailing Structure Line as your dynamic Stop Loss.
   

For Scalping (1m - 15m Timeframes)

• Filter the Noise: The most powerful feature for scalpers is the Gray Zone. If the market enters a low-volume drift (lunch hour or pre-market), the ribbon turns Gray. Avoid taking new entries during these periods to prevent "death by a thousand cuts."
  

Settings & Customization

• Structure Lookback: Controls the sensitivity of the trend line. Higher numbers = fewer signals, longer trends.
  
• Filter Low Volume (Chop): Toggle this ON to see the Gray zones. Toggle OFF if you want a standard trend view.
  
• Volume Threshold: The multiplier required to validate a move.
  
  • 1.2 (Default): Balanced.
    
  • 1.5+ : Strict (Only catches massive breakouts).
    
  • 1.0 : Loose (More signals, more noise).
    

Who Should Use This?

• Breakout Traders: To distinguish between a true breakout and a "liquidity sweep."
  
• Crypto Traders: To filter out the low-volume weekend chop.
  
• Beginners: To learn the discipline of waiting for volume confirmation before entering a trade.
  

Open Source & Transparency
This script is open source to foster learning. The core logic utilizes a modified ATR trailing stop calculation combined with a boolean volume filter (volume > sma(volume) * mult). Traders are encouraged to inspect the code to understand exactly how their signals are generated.

⚠️ Disclaimer
Trading involves a high risk of losing money. This tool is designed for educational and analytical purposes only and does not constitute financial advice.

• No indicator is 100% accurate. The "Volume Filter" reduces false signals but cannot eliminate them entirely.
  
• Lag Warning: Like all trend-following tools, this indicator is reactive. It will perform best in trending markets and may produce losses in tight, sideways ranges (though the Gray filter helps mitigate this).
  
• Risk Management: Always use a stop loss and proper position sizing. Never trade solely based on the color of a ribbon.