Biotech Volume Oscillator

1️⃣ What This Indicator Is (In One Sentence)

It tells you whether people are actually showing up to trade the stock, or if price is just drifting around on low interest.

That’s it.

It does not predict price.
It tells you whether a move is real or fragile.

2️⃣ What the Lines Mean

You see two lines:

🔵 Blue Line = Live Participation

Fast

Reacts immediately

Shows what traders are doing right now

Think:

“Is anyone actually trading this candle?”

🟠 Orange Line = Accepted Participation

Slower

Smoothed

Shows what the market has decided is normal

Think:

“Is this level of activity sticking?”

3️⃣ What the Numbers Mean (Very Important)

The numbers are percentages vs normal volume for this stock.

Around 0

Volume is normal

Nothing special happening

+10 to +25

Healthy interest

Traders are paying attention

Moves can continue

Above +25

Abnormal participation

News, hype, or institutions involved

Moves here tend to be fast

Below –20

Participation drying up

Drift, chop, fake breakouts

Below –30

Nobody is home

Price can move, but it’s fragile

Breakouts usually fail

4️⃣ How to Use It (Step-by-Step)
Step 1: Ignore Price for a Second

Look only at the oscillator.

Ask:

“Is this above zero or below zero?”

Step 2: Look at Direction

Rising oscillator → interest increasing

Falling oscillator → interest fading

Step 3: Compare Blue vs Orange
✅ Good / Healthy

Blue above orange

Both rising

→ New participation is entering

⚠️ Warning

Price rising

Blue flat or falling

Orange flat

→ Float, not conviction

🚨 Distribution

Blue rolls over from high levels

Orange follows

Price still looks “fine”

→ Selling into strength