The Volume Oscillator (VO) is a Volume Based Technical Indicator that uses the difference between two Moving Averages of a Security’s Volume to determine future trends. The Two Moving Averages are usually 5 and 20 Days Long for Future Markets. The Most common Figure of two moving averages is 14 and 28 days or weeks. The Long Period Moving Average acts as the base to determine shot Period Moving Average fluctuations. The difference between the short period and long period moving averages can be expressed in terms of points or percentages.


Volume plays a significant role in confirming a Strong or Weak Price Trend. A positive value on Histogram indicates that buyer pressure exists. Similarly, when there are negative values, it shows that a selling pressure exists. 

The Central Line on the Histogram of Volume Oscillator depicts neutral zone i.e. zero.  A Value plotted above the Central Line of Indicator idicates that the Short Term Volume is Greater than Long Term Volume.  Similarly, a Value below the Central Line depicts that Long Term Volume is Greater than the Short Term Volume. In order to evaluate the Volume Oscillator, watch out for the nonconformity of Price Activity with the VO Histogram. When Price Activity shows a buying pressure but VO disapproves further upward trend, then short term Volume is insufficient to boost higher prices. Soon after nonconformity, the Price Activity would follow Volume Oscillator Trend.  

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Settings in the chart

Settings in Strategies

Volume Oscillator can be used both separately and together with other indicators in the Strategy Builder.