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Volume Indicators

Learning Progress

3 of 5 indicators completed

On-Balance Volume (OBV)

Completed

Volume Weighted Average Price

Completed

Accumulation/Distribution Line

Currently Learning

Chaikin Money Flow

Not Started

Volume Rate of Change

Not Started

Quick Reference

OBV Signal: Bullish
VWAP Position: Above
A/D Line: Rising
CMF Value: +0.15

Volume Indicators

Understanding Volume Indicators

Volume indicators are technical analysis tools that use trading volume data to provide insights into market sentiment, trend strength, and potential price movements. They help traders confirm price trends and identify potential reversal points.

5
Key Indicators
85%
Accuracy Rate
Real-time
Data Analysis

On-Balance Volume (OBV)

Momentum indicator using volume flow

Formula: OBV = Previous OBV + Volume (if close > previous close)
Signal: Rising OBV confirms uptrend, falling OBV suggests weakness

Volume Weighted Average Price

Price weighted by volume traded

Formula: VWAP = Σ(Price × Volume) / Σ Volume
Signal: Price above VWAP is bullish, below is bearish

Accumulation/Distribution Line

Measures buying and selling pressure

Formula: A/D = Previous A/D + Money Flow Multiplier × Volume
Signal: Rising A/D line indicates accumulation

Chaikin Money Flow

Oscillator measuring money flow

Formula: CMF = Sum of Money Flow Volume / Sum of Volume (20 periods)
Signal: Values above 0 indicate buying pressure

Volume Rate of Change

How it Works

Volume Rate of Change measures the percentage change in volume over a specified period. It helps identify unusual volume spikes that may precede significant price movements.

Trading Application

High positive VROC values indicate increased interest and potential breakouts. Negative values suggest declining participation and possible trend weakness.

Key Levels

• Above +50%: Strong volume surge
• 0 to +50%: Normal volume increase
• Below -50%: Significant volume decline

Practical Trading Examples

Bullish Confirmation

When price breaks above resistance with:

  • • Rising OBV
  • • Price above VWAP
  • • Positive CMF
  • • High VROC
Confidence: High

Bearish Divergence

When price makes new highs but:

  • • OBV declining
  • • Price below VWAP
  • • Negative CMF
  • • Low volume
Warning Signal

Trend Reversal

Look for volume confirmation:

  • • OBV trend change
  • • VWAP reclaim
  • • CMF flip
  • • Volume spike
Entry Opportunity

Current Analysis

AAPL Volume Analysis Bullish
Current Volume: 52.3M
Avg Volume (20d): 45.8M
Volume Ratio: +14.2%

Indicator Values

OBV Rising
Current: 2.45M (+125K)
VWAP $177.89
Price: $178.42 (Above)
A/D Line +0.23
Trend: Accumulation
CMF (20) +0.15
Status: Buying Pressure
VROC (10) +18.5%
Volume: Above Average

Trading Signals

Strong Buy

All volume indicators confirm uptrend

Volume Breakout

Above average volume supports move

Strategy Settings

20
20
1.5x

Learning Resources

Volume Analysis Guide OBV Trading Strategies VWAP Best Practices Advanced Volume Patterns