What it does
The Volume Oscillator measures the difference between a fast and a slow moving average of volume (commonly 5 and 10 periods), usually expressed as a percentage of the slow average. Positive readings mean recent volume is running above its longer-term norm; negative readings mean activity is drying up. It tracks the trend of participation, not price.
How to add it
Click Indicators (ƒx) in the header.
Search “Volume Oscillator” and click the result.
Hover its legend row and click the gear to open settings.
How traders use it
- Positive and rising readings during a price move confirm it: trends and breakouts on expanding volume are more trustworthy.
- A breakout with the oscillator negative or falling is suspect and prone to failure.
- In a downtrend, rising volume oscillator readings confirm distribution; in an uptrend they confirm accumulation — direction comes from price, conviction from volume.
- Declining readings during a pullback are actually healthy: corrections on shrinking volume suggest the larger trend will resume.
- Zero-line crosses flag regime shifts in participation; pair them with price structure rather than trading them alone.
Inputs
| Input | Type | Default | Range / Options |
|---|---|---|---|
| Shortlen | number | 5 | 1–4999 |
| Longlen | number | 10 | 1–4999 |
Plots & styling
| Plot | Style | Default color |
|---|---|---|
| Vol Osc | line | #2196F3 |
Every plot's color, line width and visibility can be changed on the Style tab. Precision (default 2 decimals), price-scale labels and status-line values are configurable at the bottom of the Style tab.
Reference levels
| Level | Value |
|---|---|
| 0 | 0 |
Level values, colors and line styles are editable in settings.
Tips
- Merge multiple oscillators into one pane from the legend ⋯ menu to compare them on a shared axis.
- Double-click the plot to open settings directly, skipping the legend hover.
- The pane keeps its height in saved layouts, so size it once and it survives reloads.
Watch out for
- It says nothing about direction; identical readings occur in rallies and crashes.
- Volume spikes from expiries, rebalances or news distort the averages for several bars.