The Volume Oscillator shows trends in the volume of shares that have been traded over a given period. It uses a Fast Moving Average (such as a 14 day/week MA) and a Slow Moving Average (such as a 28 day/week MA). The difference between the two moving averages is then plotted as a histogram. These settings can be adjusted in the Volume Oscillator settings modal.
Using the Volume Oscillator to confirm price trends:
- When the Fast Moving Average is higher than the Slow Moving Average, the Volume Oscillator will be positive. This could signal a strong price trend.
- When the Slow Moving Average is higher than the Fast Moving Average, the Volume Oscillator will be negative. This could signal a weak price trend.