The Volume Oscillator function computes the relationship between a short-term moving average and a long-term moving average of the stock volume. Resulting values oscillate around the zero line. Applications of Volume Oscillator include indication of volume surges, which may be due to panic selling or greedy buying.
The Volume Oscillator functions require the following input series:
- d0 - Input data values - The set of data values for which the Volume Oscillator is calculated, usually the daily volume of a stock.
The Volume Oscillator function has the following parameters:
- s0 - Short Period - The short time period to use in the calculation. Default value is 7.
- s1 - Long Period - The long time period to use in the calculation. Default value is 14.
- s2 - Signal Period - The period of time to use in the calculation of the signal line. Default value is 7.
- Alignment (Optional) – Hierarchy placeholder to be used as the alignment axis.
The VOLUMEOSC function generates the following output:
- Volume Oscillator - The Volume Oscillator result set. Values oscillate about the zero line.
The VOLUMEOSCHIST function generates the following output:
- Histogram - The difference between the Volume Oscillator and the Signal Line.
The VOLUMEOSCSIG function generates the following output:
- Signal Line - A smoothing out of the Volume Oscillator that is created by applying an exponential moving average.