Volume-Weighted Price Oscillator with Adjusted Signal Levels
Summary
The document describes a price oscillator modified by incorporating volume before the indicator's final smoothing step. Because this changes the oscillator's scale and smoothing behavior, the overbought and oversold thresholds must be recalculated for the modified indicator. The described version uses two levels on each side, so different degrees of threshold break can be signaled rather than relying on a single fixed boundary.
The input levels shown are expressed in terms of the original indicator, while volume multiplication and smoothing are applied during each indicator tick. The text emphasizes the relationship between the modification and its recalibrated thresholds, but it does not specify the full price-oscillator formula, explain how the volume series is normalized, or provide trading rules for acting on signals. No tests or performance results are included. The indicator therefore offers a technical-analysis concept, while threshold interpretation and usefulness would need to be assessed for the instrument, data, and timeframe where it is applied.
Key ideas
- Volume is multiplied into the price oscillator before its final smoothing stage.
- The modified scale requires recalibrating overbought and oversold thresholds.
- Two upper and two lower levels distinguish multiple degrees of threshold breaks.
- The document gives no performance evidence or complete trading rules for using the signals.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.