Measuring Price Flow Against Relative Volume with the EVEREX Indicator
Summary
EVEREX is an indicator framework for comparing price movement, treated as effort’s result, with volume as effort. It normalizes volume, bar spread, and price changes against lookback averages, then combines six measures of price strength: close location and spread within the current bar, relative spread, and corresponding measures using a two-bar range and close shift. The resulting price score is weighted by relative volume. Positive and negative flows are averaged separately and transformed into a relative flow oscillator, with smoothing and a signal line. An optional longer-period version provides a bias reading.
The script also marks unusually large price-and-volume bars, low effort-versus-result ratios associated with compression, and high ratios associated with ease of movement. These are descriptive signals, not tested entry rules. Normalization uses subjective bands and selectable averages, so readings depend on the chosen settings. When volume data is unavailable, the calculation substitutes a neutral volume value; this means the indicator no longer reflects actual volume effort for those instruments. The document presents no performance study.
Key ideas
- The indicator compares normalized price action with relative volume to characterize effort versus result.
- Six current-bar and two-bar price measures are averaged into a directional strength score.
- Relative volume weights price strength before bullish and bearish flows are smoothed into an oscillator.
- Optional markers identify compression, ease-of-movement conditions, and large price-volume bars.
- Normalization bands are subjective, and missing volume is replaced with a neutral value.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.