QuanTAlib/lib/volume/_index.md

Volume

"It takes volume to make prices move." — Charles Dow

Volume is market fuel. Price tells what happened; volume tells how hard the market worked to make it happen.

In a world of algorithmic trading and dark pools, volume analysis reveals where money actually flows. These indicators track conviction, not just shares traded.

Indicator Status

Indicator	Full Name	Status	Description
ADL	Accumulation/Distribution Line	✅	Correlates price location within range to volume. Grandfather of volume flow analysis.
ADOSC	Chaikin A/D Oscillator	✅	Momentum indicator for AD Line. Predicts reversals by measuring acceleration of money flow.
AOBV	Archer On-Balance Volume	📋	Modified OBV incorporating intra-period price movement.
CMF	Chaikin Money Flow	📋	Measures money flow volume over set period (typically 20-21 days).
EFI	Elder's Force Index	📋	Combines price movement, direction, volume to measure buying/selling power.
EOME	Ease of Movement	📋	Relates price change to volume. Highlights periods of effortless price movement.
III	Intraday Intensity Index	📋	Measures buying/selling pressure within day's range using close position.
KVO	Klinger Volume Oscillator	📋	Compares short-term and long-term volume trends to identify potential reversals.
MFI	Money Flow Index	📋	Volume-weighted RSI. Measures buying/selling pressure using price and volume.
NVI	Negative Volume Index	📋	Tracks price changes on lower volume days. Assumes smart money acts on quiet days.
OBV	On Balance Volume	📋	Fundamental volume indicator. Cumulative volume based on price direction.
PVD	Price Volume Divergence	📋	Systematic divergence detection between price and volume movements.
PVI	Positive Volume Index	📋	Tracks price changes on higher volume days. Assumes crowd behavior.
PVO	Percentage Volume Oscillator	📋	Compares short-term and long-term volume moving averages as percentages.
PVR	Price Volume Rank	📋	Ranks price performance relative to volume activity.
PVT	Price Volume Trend	📋	Cumulative volume adjusted by relative price changes. Similar to OBV.
TVI	Trade Volume Index	📋	Measures intra-day buying/selling pressure based on tick data.
TWAP	Time Weighted Average Price	📋	Average price weighted equally by time. Used as execution benchmark.
VA	Volume Accumulation	📋	Cumulative volume adjusted by close position relative to range midpoint.
VF	Volume Force	📋	Measures force of volume behind price movements.
VO	Volume Oscillator	📋	Difference between short and long volume moving averages. Shows volume momentum.
VROC	Volume Rate of Change	📋	Measures speed at which volume is changing over time.
VWAD	Volume Weighted A/D	📋	Similar to ADL but weights accumulation/distribution by volume.
VWAP	Volume Weighted Average Price	📋	Average price weighted by volume. Common execution benchmark.
VWMA	Volume Weighted MA	📋	Moving average where each price point is weighted by its volume.
WAD	Williams A/D	📋	Measures cumulative buying/selling pressure by comparing closes to opens/highs/lows.

Status Key: ✅ Implemented | 📋 Planned

Selection Guide

Use Case	Recommended	Why
Smart money detection	ADL	Tracks close position within range. Reveals accumulation vs distribution.
Trend confirmation	ADL, ADOSC	Volume should confirm price moves. Divergences warn of weakness.
Momentum of money flow	ADOSC	EMA difference on ADL shows acceleration of buying/selling pressure.
Reversal anticipation	ADOSC	Fast/slow EMA crossovers on volume flow precede price reversals.

Volume Analysis Principles

Volume reveals conviction. Four key patterns:

1. Rising price + rising volume: Strong trend. Smart money participating.
2. Rising price + falling volume: Weakening trend. Distribution possible.
3. Falling price + rising volume: Strong selling. Capitulation or accumulation.
4. Falling price + falling volume: Weak selling. May find support.

The ADL family quantifies these relationships through close position within range, normalized by volume.