Volume Oscillator
Percent difference between a fast and slow EMA of volume; above zero means short-term volume exceeds long-term average, signalling heightened activity.
Formula
Volume Oscillator = ((EMA(Vol, short) − EMA(Vol, long)) / EMA(Vol, long)) × 100
The Volume Oscillator subtracts a long-period EMA of volume (typically 28) from a short-period EMA (typically 14), then divides by the long EMA and multiplies by 100 to express the result as a percentage.
When the oscillator crosses above zero, short-term volume momentum is increasing — confirming price breakouts or trend continuation. A divergence where price rallies but the Volume Oscillator declines warns that the move lacks conviction. It is simpler than OBV or CMF but useful as a quick volume-trend gauge.
Related Terms
Chaikin Money Flow
Volume-weighted measure of buying/selling pressure over 20–21 periods; positive values suggest accumulation, negative values distribution.
IntermediateMoney Flow Index (MFI)
Volume-weighted RSI that measures buying and selling pressure; above 80 is overbought, below 20 oversold, over a 14-period default.
IntermediateOn-Balance Volume (OBV)
Cumulative volume indicator that adds volume on up days and subtracts it on down days to reveal whether volume is confirming a price trend.
BeginnerPrice Oscillator
Percent difference between two moving averages of price; equivalent to MACD scaled by the longer MA so it is comparable across different-priced assets.
Intermediate