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60 lines
4.3 KiB
Markdown
60 lines
4.3 KiB
Markdown
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# Volume
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> "It takes volume to make prices move." — Charles Dow
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Volume is market fuel. Price tells what happened; volume tells how hard the market worked to make it happen.
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In a world of algorithmic trading and dark pools, volume analysis reveals where money actually flows. These indicators track conviction, not just shares traded.
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## Indicator Status
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| Indicator | Full Name | Status | Description |
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| :--- | :--- | :---: | :--- |
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| [ADL](lib/volume/adl/Adl.md) | Accumulation/Distribution Line | ✅ | Correlates price location within range to volume. Grandfather of volume flow analysis. |
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| [ADOSC](lib/volume/adosc/Adosc.md) | Chaikin A/D Oscillator | ✅ | Momentum indicator for AD Line. Predicts reversals by measuring acceleration of money flow. |
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| AOBV | Archer On-Balance Volume | 📋 | Modified OBV incorporating intra-period price movement. |
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| CMF | Chaikin Money Flow | 📋 | Measures money flow volume over set period (typically 20-21 days). |
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| EFI | Elder's Force Index | 📋 | Combines price movement, direction, volume to measure buying/selling power. |
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| EOME | Ease of Movement | 📋 | Relates price change to volume. Highlights periods of effortless price movement. |
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| III | Intraday Intensity Index | 📋 | Measures buying/selling pressure within day's range using close position. |
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| KVO | Klinger Volume Oscillator | 📋 | Compares short-term and long-term volume trends to identify potential reversals. |
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| MFI | Money Flow Index | 📋 | Volume-weighted RSI. Measures buying/selling pressure using price and volume. |
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| NVI | Negative Volume Index | 📋 | Tracks price changes on lower volume days. Assumes smart money acts on quiet days. |
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| OBV | On Balance Volume | 📋 | Fundamental volume indicator. Cumulative volume based on price direction. |
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| PVD | Price Volume Divergence | 📋 | Systematic divergence detection between price and volume movements. |
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| PVI | Positive Volume Index | 📋 | Tracks price changes on higher volume days. Assumes crowd behavior. |
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| PVO | Percentage Volume Oscillator | 📋 | Compares short-term and long-term volume moving averages as percentages. |
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| PVR | Price Volume Rank | 📋 | Ranks price performance relative to volume activity. |
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| PVT | Price Volume Trend | 📋 | Cumulative volume adjusted by relative price changes. Similar to OBV. |
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| TVI | Trade Volume Index | 📋 | Measures intra-day buying/selling pressure based on tick data. |
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| TWAP | Time Weighted Average Price | 📋 | Average price weighted equally by time. Used as execution benchmark. |
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| VA | Volume Accumulation | 📋 | Cumulative volume adjusted by close position relative to range midpoint. |
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| VF | Volume Force | 📋 | Measures force of volume behind price movements. |
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| VO | Volume Oscillator | 📋 | Difference between short and long volume moving averages. Shows volume momentum. |
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| VROC | Volume Rate of Change | 📋 | Measures speed at which volume is changing over time. |
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| VWAD | Volume Weighted A/D | 📋 | Similar to ADL but weights accumulation/distribution by volume. |
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| VWAP | Volume Weighted Average Price | 📋 | Average price weighted by volume. Common execution benchmark. |
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| VWMA | Volume Weighted MA | 📋 | Moving average where each price point is weighted by its volume. |
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| WAD | Williams A/D | 📋 | Measures cumulative buying/selling pressure by comparing closes to opens/highs/lows. |
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**Status Key:** ✅ Implemented | 📋 Planned
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## Selection Guide
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| Use Case | Recommended | Why |
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| :--- | :--- | :--- |
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| Smart money detection | ADL | Tracks close position within range. Reveals accumulation vs distribution. |
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| Trend confirmation | ADL, ADOSC | Volume should confirm price moves. Divergences warn of weakness. |
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| Momentum of money flow | ADOSC | EMA difference on ADL shows acceleration of buying/selling pressure. |
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| Reversal anticipation | ADOSC | Fast/slow EMA crossovers on volume flow precede price reversals. |
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## Volume Analysis Principles
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Volume reveals conviction. Four key patterns:
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1. **Rising price + rising volume**: Strong trend. Smart money participating.
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2. **Rising price + falling volume**: Weakening trend. Distribution possible.
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3. **Falling price + rising volume**: Strong selling. Capitulation or accumulation.
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4. **Falling price + falling volume**: Weak selling. May find support.
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The ADL family quantifies these relationships through close position within range, normalized by volume.
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