Where can I find a tutorial on the AVL indicator?

The AVL indicator combines volume, liquidity, and on-chain data to help crypto traders identify accumulation, distribution, and whale activity with greater accuracy.

Aug 04, 2025 at 04:43 pm

Understanding the AVL Indicator in Cryptocurrency Trading

The AVL indicator, also known as the Advanced Volume Liquidity indicator, is a technical analysis tool used primarily in cryptocurrency trading to assess the strength and sustainability of price movements based on volume and liquidity data. Unlike traditional volume indicators, the AVL indicator integrates on-chain volume metrics, exchange inflows and outflows, and liquidity pool changes to provide a more comprehensive view of market activity. This makes it especially valuable in the crypto space, where large transactions on decentralized exchanges (DEXs) and centralized exchanges (CEXs) can significantly influence price trends. Traders use the AVL indicator to identify accumulation and distribution phases, detect whale activity, and confirm breakout or breakdown validity.

Key Components of the AVL Indicator

To fully grasp how the AVL indicator works, it's essential to understand its core components:

• Volume Profile: This layer displays the volume traded at specific price levels over a given period. It helps identify high-volume nodes (HVN) and low-volume nodes (LVN), which act as support and resistance zones.
• Liquidity Heatmap: Visualizes where large buy or sell orders are clustered across exchanges. Areas with high liquidity concentration often prevent sharp price movements unless overwhelmed by massive order flow.
• Net Flow Analysis: Measures the difference between incoming and outgoing volume on exchanges. A positive net flow suggests accumulation, while a negative net flow may indicate distribution.
• Whale Transaction Tracking: Integrates blockchain data to highlight transactions above a certain threshold (e.g., 100 BTC or equivalent in altcoins), which can signal institutional or large player involvement.

These components are often color-coded on trading platforms: green bars typically represent buying pressure, while red bars indicate selling pressure. The height of the bar reflects the intensity of volume or liquidity change.

Where to Access AVL Indicator Tutorials

Finding a reliable tutorial on the AVL indicator requires targeting platforms that specialize in advanced crypto analytics and on-chain data tools. Here are the primary sources:

• TradingView Scripts and Community Scripts: Search for "AVL Indicator" in the TradingView public library. Many developers share custom scripts with detailed descriptions. Look for scripts with high user ratings and recent updates. Once added to a chart, click on the indicator to access the source code and comments, which often include usage tips.
• Crypto Analytics Platforms: Platforms like Glassnode, CryptoQuant, and Santiment offer educational content that, while not always naming the AVL indicator directly, cover similar volume and liquidity concepts. Their YouTube channels and blog tutorials often explain how to interpret volume spikes and exchange flows.
• Dedicated Crypto Education Websites: Sites such as CoinGecko Learn, Binance Academy, and Bybit Learn publish beginner to advanced guides. Use their search functions with keywords like "volume liquidity analysis" or "on-chain volume trading" to find relevant material.
• YouTube Tutorials: Search queries like "AVL indicator crypto tutorial" or "how to use advanced volume liquidity indicator" yield video walkthroughs. Prioritize videos with detailed chart demonstrations and real-time examples on assets like Bitcoin or Ethereum.

Ensure any tutorial you follow includes clear visual examples and explains how to distinguish between organic volume surges and manipulative pump-and-dump activity.

Setting Up the AVL Indicator on Trading Platforms

To use the AVL indicator effectively, follow these steps to install and configure it:

• Navigate to TradingView.com and open a chart for your desired cryptocurrency pair (e.g., BTC/USDT).
• Click on the "Indicators" button located at the top of the chart interface.
• In the search bar, type "AVL" or "Advanced Volume Liquidity".
• Select the most reputable script from the results—preferably one with user reviews and a verified author.
• Click "Add to Chart". The indicator will appear at the bottom of the price chart.
• Right-click on the indicator panel and choose "Settings" to customize parameters such as:
  • Volume threshold for whale detection
  • Timeframe sensitivity (e.g., 1-hour vs. 1-day aggregation)
  • Color scheme for buy/sell volume
• Adjust the opacity and bar width for better visual clarity.
• Overlay the AVL indicator with price action tools like moving averages or RSI to confirm signals.

Some versions allow integration with APIs from blockchain explorers, enabling real-time whale alert popups. Ensure your browser allows notifications if this feature is enabled.

Interpreting AVL Indicator Signals

Reading the AVL indicator involves analyzing both magnitude and context of volume and liquidity changes:

• A tall green bar appearing during a price consolidation phase may indicate accumulation by large investors.
• A sharp red spike at a resistance level could signal distribution or profit-taking.
• Sustained green volume during an uptrend confirms bullish momentum, especially if price breaks above a high-volume node.
• Low volume during a price rise may suggest a lack of conviction and a potential false breakout.
• Sudden exchange inflows shown in the net flow section can precede downward pressure, as coins moved to exchanges are often sold.

Cross-verify AVL signals with on-chain metrics such as exchange reserve changes or MVRV (Market Value to Realized Value) for stronger confirmation. For example, if the AVL shows heavy selling volume but exchange reserves are decreasing, the selling might be internal (wallet-to-wallet) rather than market sell pressure.

Common Mistakes When Using the AVL Indicator

Traders often misinterpret AVL data due to these pitfalls:

• Ignoring timeframes: Using the AVL on a 5-minute chart may generate excessive noise. It performs best on 1-hour, 4-hour, or daily charts.
• Overreliance on color alone: A red bar doesn’t always mean bearish—context matters. If price is near strong support and the red volume is declining, it could indicate capitulation ending.
• Failing to adjust thresholds: Default whale transaction settings may not suit low-cap altcoins. Manually adjust the minimum transaction size based on the asset’s average trade volume.
• Not combining with price structure: The AVL should not be used in isolation. Always align its signals with key support/resistance levels and trendlines.

Frequently Asked Questions

Is the AVL indicator available on Binance or Coinbase?

No, Binance and Coinbase do not natively support the AVL indicator. However, you can use TradingView’s web terminal, which connects to these exchanges via API, to apply the AVL indicator and execute trades based on its signals.

Can the AVL indicator predict crypto market crashes?

The AVL indicator does not predict crashes outright. It can, however, highlight increasing sell volume, rising exchange reserves, and whale outflows—conditions often seen before sharp declines. These are warning signs, not guarantees.

How do I verify if an AVL script on TradingView is trustworthy?

Check the script’s publication date, number of likes and comments, and whether the author has a verified badge. Avoid scripts that require you to enter API keys or personal information. Open-source scripts with transparent code are preferable.

Does the AVL indicator work with altcoins?

Yes, but effectiveness varies. For major altcoins like Ethereum, Solana, or Cardano, the AVL indicator works well due to sufficient on-chain data. For low-liquidity or privacy-focused coins (e.g., Monero), data scarcity may reduce accuracy.