short covering

// Short Covering Detector (OI + VWAP + Volume)

// Combines price crossing above VWAP, volume spike, and decreasing Open Interest

// in an up move—classic short covering setup.

// Disclaimer: For educational use only.

indicator("Short Covering OI-VWAP-Volume", overlay=true)

// Inputs

src = input.source(close, title="Source")

volFactor = input.float(1.5, title="Volume Spike Factor")

oiFactor = input.float(0.0, title="Minimum OI Decrease (>=)", tooltip="Detect OI decrease (negative or zero change)")

vwapLen = input.int(1, title="VWAP Length (bars)", tooltip="Adjust if using anchored VWAP")

cooldownBars = input.int(10, title="Cooldown Bars Between Signals", tooltip="Spacing between signals")

volSpike = volume > ta.sma(volume, 20) * volFactor

// VWAP of current bar (built-in)

vwap = vwapLen

priceAboveVWAP = src > vwap

// Open Interest logic (bar-by-bar change)

oiChange = oi - oi[1]

oiDecrease = oiChange <= oiFactor

// Combined raw signal

rawSignal = priceAboveVWAP and volSpike and oiDecrease

// Cooldown logic

static int barsSinceSignal = cooldownBars + 1

barsSinceSignal := barsSinceSignal + 1

shortCover = rawSignal and barsSinceSignal > cooldownBars

if shortCover{

 barsSinceSignal := 0

}

// Plotting

plotshape(series=shortCover,location=location.belowbar, shape=shape.arrowup, color=color.orange, text="SC" )

barcolor(shortCover ? color.orange : na)

// Alerts

alertcondition(shortCover, title="Short Covering (OI-VWAP-Vol)", message="Short covering indication via OI ↓ + VWAP breach + Volume ↑")