Normalized Volume Oscillator and Fibonacci-Based Volume Signals
Summary
The indicator expresses current trading volume relative to its average over a chosen period, using percentage-style normalized values. Values can fall below zero when volume is quieter than the average, making subdued activity visible alongside volume expansion.
It also colors histogram bars by the size of the increase: blue marks below-average volume; dark green marks a modest rise; light green, orange, and yellow mark increases crossing the stated 38.2%, 61.8%, and 100% Fibonacci thresholds. The document describes the indicator’s construction and color scheme, but gives no trading rules, performance tests, or guidance on selecting the averaging period. The thresholds are visual categories rather than evidence that a price move will follow. It notes an initial MQL4 implementation and publication in 2008.
Key ideas
- The oscillator compares current volume with its average over a selected period.
- Negative normalized readings indicate volume below the period average.
- Histogram colors distinguish several levels of volume expansion, including Fibonacci-based thresholds.
- The document explains the display but provides no tested trading strategy or performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.