Volume-Price Momentum Oscillator Using Smoothed Signed Price Changes

Summary

The Volume Price Momentum Oscillator combines trading volume with the direction and size of the latest close-to-close price change. It first forms a raw measure by multiplying volume by the difference between the current close and the previous close. It then applies an exponential moving average over a configurable period to smooth that measure.

The description defines the calculation and names its single adjustable parameter, but it does not specify how to interpret oscillator levels, identify entry or exit signals, or compare readings across instruments. No examples, empirical tests, or performance results are provided. Because the raw value incorporates volume and price units, users would need to consider instrument scale and data conventions when applying or comparing it.

Key ideas

• The raw volume-price measure multiplies volume by the close-to-close price change.
• An exponential moving average smooths the raw measure over a configurable period.
• The document provides no trading thresholds, signal rules, or empirical validation.

Tags

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