Volume Oscillator

The Volume Oscillator consists of two “Moving Averages” on volumes, one fast and one slow. The volume of the fast moving average is subtracted from the slow moving average. The Volume Oscillator is interpreted using the same principles of volume analysis, an increase or decrease in the price accompanied by an increase in volume is considered a sign of strength of the prevailing trend. Therefore, when the fast moving average of volumes (9 periods) is higher than the slow moving average (21 periods), the Volume Oscillator is above the zero line and is confirming the trend, be it positive or negative.