You will have to on no account make a exchange centered best on a trend indicator. The volume Oscillator (VO) is one more indicator with a purpose to aid you verify whether a pattern is breaking aid or resistance. In essence, the historical pronouncing is correct: with out quantity there is no price movement and with out rate action there’s no volume. Use that old announcing to your knowledge.
A couple of oscillators just like the percentage quantity Oscillator (PVO) and the Market volume Oscillator (MVO) and are situated on the VO.
The VO calculation is situated on two quantity moving Averages (VMAs). The bottom of calculation is discreet:
VO = [Fast VMA] / [Slow VMA]