Freedom of Movement Oscillator: Volume-Adjusted Price Movement

Summary

The Freedom of Movement oscillator is presented as a way to measure price movement while removing the trend component. It standardizes a volume-to-movement measure against its own moving average and standard deviation over a configurable period. Its inputs include relative volume, calculated from volume’s deviation from its average, and absolute close-to-close percentage movement. Both components are rescaled using their period highs and lows before being combined.

The document identifies period and moving-average method as configurable settings and provides the calculation definitions, but it offers no trading rules, charts, backtest results, or evidence of predictive value. The description therefore explains indicator construction rather than how to interpret its readings or use them in a strategy. The rescaling formulas also divide by the range of each component, so implementation should account for cases where that range is zero.

Key ideas

• The oscillator aims to represent price movement after removing the trend component.
• It combines normalized relative volume with normalized absolute close-to-close movement.
• The result is standardized using a moving average and standard deviation over a configurable period.
• The document defines the indicator but provides no entry rules or performance evidence.
• An implementation needs to handle zero-range inputs in the normalization step.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.