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Indicator Guide > Volume > Volume Oscillator
Indicators A ~ Z > V ~ Z > Volume Oscillator
Contents > V ~ Z > Volume Oscillator
Money Flow & Volume > Volume > Volume Oscillator
Table of Contents

Volume Oscillator

The Volume Oscillator (VO) identifies trends in volume using a two moving average system.

The Volume Oscillator measures the difference between a faster and slower moving average (MA).

  • If the fast MA is above the slow MA the oscillator will be positive.
  • If the fast MA is below the slow MA then the oscillator will be negative.
  • The Volume Oscillator will be zero when the two MA's cross.

Trading Signals

  • Rising volume (positive VO) signals a strong trend.
  • Falling volume (negative VO) indicates trend weakness.
Example

Coca Cola Corporation with Volume Oscillator Volume Oscillator.

Coca Cola Volume Oscillator

Mouse over chart captions to display trading signals.

Price forms a flag pattern after a strong up-trend. Volume declines on each trough and rises on each peak, suggesting an upward breakout.

  1. The breakout above the resistance line is then confirmed by a sharp rise in volume.

Setup

See Indicator Panel for directions. The default Volume Oscillator settings are:

To alter the default settings - Edit Indicator Settings.



 
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