Smoothed Range-to-Volume Ratio Oscillator

Summary

This indicator compares a candle’s price movement with its tick volume and plots the result as a histogram with a smoothed moving-average signal line. The calculation can use either the absolute open-to-close difference or the high-to-low range, divided by tick volume. A period and moving-average method control the signal-line smoothing, while a display option selects either a single histogram color or colors based on the previous column’s position relative to the signal line.

The document explains the formulas and input settings but gives no market interpretation beyond the construction of the indicator, and it reports no tests or trading results. Because the measure uses tick volume, its values depend on the instrument and platform’s volume data. The ratio alone does not establish whether a move is likely to continue or reverse; any trading use would need separate rules and empirical validation.

Key ideas

• The oscillator divides either candle body size or full high-low range by tick volume.
• A moving average of the ratio forms the signal line.
• Users can choose the range definition, smoothing period, moving-average method, and color mode.
• The document supplies no evidence that the oscillator predicts price movement.

Tags

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