Description

• Volume Oscillator is simple but a useful study to understand volume trends
• Value is derived by the difference of two moving averages
• Indicator oscillates above and below zero level
• It helps to know the direction of volume trend

Interpretation

• Oscillator crossing zero level from below indicates that current price trend is strong
• Oscillator crossing zero level from above indicates that current price trend is losing interest of crowd
• If indicator value rises and price falls, it indicates stock is having more sellers
• If indicator value falls and price rises, it indicates stock is moving up at low volumes

Default Parameters Used/Inputs

• Qty Line
• Fast Avg Type
• Fast Bars
• Slow Avg Type
• Slow Bars

Returns/Output

Volume Oscillator values of stock for the specified period

Formula

VO = ( Fast Volume Avg – Slow volume Avg / Fast volume Avg ) * 100