Indicator VFO (Volume Flow Oscillator) is based on standard indicator OBV (On Balance Volume). It was described in the Technical Analysis of Stocks & Commodities magazine in June, 2004.
Its values above zero are bullish and indicate accumulating, while those below zero indicate distributing.
Divergences between the price and the indicator values may indicate a forthcoming change in the trend.
The indicator has four configured parameters:
- Period - calculation period;
- Dev Coefficient - standard deviation coefficient;
- Vol Coefficient - yesterday's volume impact factor;
- Smoothing period - smoothing period.