Article/Author: Omega Research Inc., 1997

Download: VOLUME-OSC.ELA

Category: Indicator > Volume Based

Description:

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.

Usage:

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.

INPUTS: VOL(VOLUME), FAST(14), SLOW(34);

VARIABLES: VOLUMEOSC(0);



VOLUMEOSC = AVERAGE(VOL, FAST) - AVERAGE(VOL, SLOW);



PLOT1(VOLUMEOSC, "VOLOSC");  



IF PLOT1 CROSSES OVER 0 THEN

	ALERT("VOLUME OSCILLATOR CROSSED OVER ZERO")

ELSE

	IF PLOT1 CROSSES UNDER 0 THEN

		ALERT("VOLUME OSCILLATOR CROSSED UNDER ZERO");