Category: Indicator > Volume Based
The Volume Oscillator indicator calculates a fast and slow volume moving average. The difference between the two (fast volume ma – slow volume ma) is then plotted as a histogram. The histogram, like an oscillator, fluctuates above and below a zero line. Volume can provide insight into the strength or weakness of a price trend. This indicator plots positive values above the zero line, and negative below.
A positive value suggests there is enough market support to continue to drive price activity in the direction of the current trend. A negative value suggests there is a lack of support and prices may begin to become stagnant or reverse.
Vol - Value used in calculating the Volume Oscillator
Fast - Number of bars used to calculate the fast volume moving average
Slow - Number of bars used to calculate the slow volume moving average
INPUTS: VOL(VOLUME), FAST(14), SLOW(34);
VOLUMEOSC = AVERAGE(VOL, FAST) - AVERAGE(VOL, SLOW);
IF PLOT1 CROSSES OVER 0 THEN
ALERT("VOLUME OSCILLATOR CROSSED OVER ZERO")
IF PLOT1 CROSSES UNDER 0 THEN
ALERT("VOLUME OSCILLATOR CROSSED UNDER ZERO");