Volume Indicators
Indicators that incorporate volume data in their calculations to provide insights into buying and selling pressure, money flow, and market participation strength.
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.
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.
Functions Reference
_mfi - Money Flow Index measures volume-weighted momentum
_mfi(barIndex: number, series: TimeSeries, period?: number = 14): numberParameters:
- barIndex (number) - Current bar index
- series (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(barIndex: number, series: TimeSeries): numberParameters:
- barIndex (number) - Current bar index
- series (TimeSeries) - Source data series with volume
Returns:
number (OBV value)
Code Example:
Common Usage Patterns
Volume-Price Confirmation
Use volume indicators to confirm price movements and identify divergences
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.