Volume Indicators

On the oft stated premise that Volume precedes price, Volume Indicators try to examine volume action as a prelude to price action, often on both sides, both as a continuation signal and/or as a reversal signal.

As is usually the case with all market indicators, the story that volume tells is often one that needs to be seen in the context of the broader market action. While extremes of volume often tell a story, just what that story is is more a matter of interpretation. There is no Holy Grail.

Osi Volume Balance Oscillator

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The Osi Volume Balance Oscillator is another, optionally, adaptive oscillator. It is independent of price, and based only on volume, the theory being that volume precedes price. As it is not a derivative of price, its action can only be read as another look at what price is likely to do. It cannot be classified as either a lagging or leading indicator, but its action does suggest that it may be a good precursor of price action, based as the indicator is on volume. It is largely based on the net volume over the measuring period, turned into an oscillator.

When using this indicator, the trader does not need to have to determine and select a period for calculation. Instead the calculation period used, on each bar, is a specified, user-selectable, factor of the period of the dominant wave as measured on that bar: quarter-wave, half-wave or full-wave.

Price: $397.00