Categories of Volume Indicators

Volume Indicators - Their Authors


On Balance Volume                              - Frank Vignola, Joe Granville
Volume-Price Trend                              David Markstein
Negative and Positive Volume Indices    - Paul and Richard Dysart
Intraday Intensity                                - David Bostian
Accumulation Distribution                     - Larry Williams
Money Flow Index                                - Gene Quong and Avram Soudek
Volume-Weighted MACD                        -Buff Dormeier



Volume Indicator Formulas

On Balance Volume = volume * the sign of the change
Volume-Price Trend = volume *percentage change

Negative Volume Index =if volume falls, accumulate price change
Positive Volume Index = if volume rises, accumulate price change

Intraday Intensity = (2 *close - high - low)/(high - low) * volume
Accumulation Distribution = (close - open) /(high - low) *volume

MFI= 100 - 100/(1 +positive price *volume sum/negative price *volume sum)

VWMACD = 12-period volume-weighted average of the last - 26-period volume-weighted average of the last
VWMACD signal line = 9-period exponential average VWMACD


Categories of Volume Indicators

(1) Periodic price change : On Balance Volume, Volume-Price Trend
(2) Periodic volume change : Negative and Positive Volume Indices
(3) Intraperiod structure : Intraday Intensity, Accumulation Distribution
(4) Volume weighting : Money Flow Index, Volume-Weighted MACD


(1) Periodic price change :The first category of volume indicators includes On Balance Volume (OBV) and Volume-Price Trend (V-PT) and is characterized by calculations driven by period-over-period price change. OBV looks at whether the close is up or down, while V-PT considers the percentage change.

(2)  Periodic volume change : The second category, which includes the Positive Volume Indices (PVI) and Negative Volume Indices (NVI), is the logical opposite of the first category. Here the change in volume is used to parse price to form the indicator rather than the change in price being used to parse volume. For example, NVI changes only in periods when volume drops from the prior period.

(3) Intraperiod structure : The third category relies on an examination of each period's internal data to drive the indicators . Intraday Intensity, based on where we close in the range, and Accumulation Distribution, based on the relationship of the high and low to the range. These indicators have no reference to prior periods.

(4)  Volume weighting : The fourth category uses volume to inform existing indicators. Included are the Money Flow Index, a version of Welles Wilder's Relative Strength Index, and Volume-Weighted (VW) MACD, a version of Gerald Appel's MACD.

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