VoLume Trend

Volume Trend – Directional Volume Flow & Momentum Oscillator

This indicator provides a focused view on whether buying or selling volume is dominating the market over your chosen lookback window. By tracking and visualizing the net flow of volume on up and down bars, it helps active traders quickly assess underlying market pressure and spot shifts in trend momentum.

Key Features
Directional Volume Flow Chart:

Calculates cumulative and average up-volume (when close > open) and down-volume (when close < open) over a configurable lookback period.

Plots the net difference (“Flow”) as a smooth oscillator, colored green when net flow is positive and red when it’s negative.

Smart Signal Logic:

Distinguishes when current volume is unusually high compared to average up or down volume, marking possible exhaustion or reversals.

Flexible thresholds ensure that only significant changes in volume direction are highlighted.

Zero Line Reference:

A horizontal line at zero helps easily distinguish between dominant buying (above zero) and selling (below zero) flows.

How to Use
Market Pressure: When the Flow oscillator is green and above zero, buyers are driving the market; when red and below zero, selling dominates.

Detect Volume Surges: Watch for sudden color flips or sharp moves in the Flow oscillator: these may foreshadow breakouts, false moves, or exhaustion.

Confirm Price Moves: Align Flow direction with price action to increase trade confirmation, or spot divergence for potential reversals.