How it is calculated
The fast EMA of volume minus the slow EMA, divided by the slow EMA, times 100; by default 5 and 10. Each EMA is seeded with the plain mean of its own first values, so the first value is at bar max(fast, slow) minus 1. While the slow average is 0 there is no value.
Reference: Volume oscillator, EMA based
How to read it
Above zero recent volume is higher than usual, below zero lower. It says nothing about direction: a breakout with a rising VO has more participation behind it than one on fading volume. On forex the volume is tick volume, which still shows when the market is busy, for example at a session open.
In a strategy
As a breakout filter: only trade a breakout while ctx.ind("vo", fast=5, slow=10) is above zero.
Inputs
| Input | Type | Default | Range or choices |
|---|---|---|---|
Fast lengthfast | Whole number | 5 | min 1, max 5000 |
Slow lengthslow | Whole number | 10 | min 1, max 5000 |
What it draws
| Line | Drawn as |
|---|---|
| VO | Line |
Guide lines at 0.
Used in
No strategy template reads it yet.