Volume Indicators
Indicators that incorporate volume data in their calculations to provide insights into buying and selling pressure, money flow, and market participation strength.
2
Functions
2
Types
Overview
Money Flow Index (MFI)
Volume-weighted RSI that measures buying and selling pressure using both price and volume data to identify overbought/oversold conditions.
• Volume-weighted momentum • Overbought: > 80 • Oversold: < 20
On-Balance Volume (OBV)
Cumulative volume indicator that adds volume on up days and subtracts volume on down days to show the flow of volume in relation to price.
• Cumulative volume flow • Trend confirmation • Divergence analysis
Functions Reference
mfi - Money Flow Index measures volume-weighted momentum
mfi(source: TimeSeries, period?: number = 14): numberParameters:
- source (TimeSeries) - Source data series with volume
- period (number) - Number of periods (default: 14)
Returns:
number (MFI value 0-100)
Code Example:
obv - On-Balance Volume shows cumulative volume flow
obv(source: TimeSeries): numberParameters:
- source (TimeSeries) - Source data series with volume
Returns:
number (OBV value)
Code Example:
Best Practices
Volume Quality
High volume during breakouts confirms the move. Low volume breakouts are often false signals that reverse quickly.
Divergence Analysis
Watch for divergences between price and volume indicators. When price makes new highs but volume indicators don't, be cautious.