Unlike the OBV, indicator values are no longer meaningless. Positive readings are bullish and negative bearish .

The calculation is based on the day's median instead of the closing price.

A volatility threshold takes into account minimal price changes and another threshold eliminates excessive volume .

The indicator takes into account only the latest 6 month volume action and not the entire data loaded in the chart.

General Usage

A simplified interpretation of the VFI is that values above zero indicate a bullish state and the crossing of the zero line is the trigger or buy signal.

The strongest signal with all money flow indicators is of course divergence.

The classic form of divergence is when the indicator refuses to follow the price action and makes lower highs while price makes higher highs (negative divergence). If price reaches a new low but the indicator fails to do so, then price probably traveled lower than it should have. In this instance, you have positive divergence.

Default settings

130 VFI Length

0.2 Coef

2.5 Volume cutoff

3 Smoothing Period

Further setting examples can be found on http://www.precisiontradingsystems.com/VOLUME_FLOW.htm

**Trend Visualisation**

Optional Setting:

If the trend direction is*DOWN*the moving average is painted red. If the trend direction is*UP*the moving average is painted in green.

If the movement is*FLAT*then the color is grey.

**Moving Averages**

4 different types of Moving Averages are available for both FVI and the optional Moving Average of the FVI.

ALMA ( Arnaud Legoux Moving Average)

- EMA ( Exponential Moving Average )

- SMA ( Simple Moving Average )

- WMA ( Weighted Moving Average )

**Notes**

This indicator is using the exact formula from http://mkatsanos.com/VFI.html where EMA has been taken as default value for FVI smoothing calculation.

Note di rilascio:

Corrected wrong study shortname.

- Minor improvements to drawings and colors

The Volume Flow Indicator (VFI) indicator was first introduced in my June 2004 and is is based on the popular On Balance Volume (OBV) but with three very important modifications:

- Unlike the OBV, indicator values are no longer meaningless. Positive readings are bullish and negative bearish.

- The calculation is based on the day's median instead of the closing price.

- A volatility threshold takes into account minimal price changes and another threshold eliminates excessive volume.

- The indicator takes into account only the latest 6 month volume action and not the entire data loaded in the chart.

**General Usage**

A simplified interpretation of the VFI is that values above zero indicate a bullish state and the crossing of the zero line is the trigger or buy signal.

The strongest signal with all money flow indicators is of course divergence.

The classic form of divergence is when the indicator refuses to follow the price action and makes lower highs while price makes higher highs (negative divergence). If price reaches a new low but the indicator fails to do so, then price probably traveled lower than it should have. In this instance, you have positive divergence.

**Default settings**

- 130 VFI Length

- 0.2 Coef

- 2.5 Volume cutoff

- 3 Smoothing Period

E.g. 40 or 18 Length to achieve different results like in the examples.

**Trend Visualisation**

Optional: If the trend direction is

*DOWN*the moving average is painted red. If the trend direction is

*UP*the moving average is painted in green.

If the movement is

*FLAT*then the color is grey.

**Moving Averages**

4 different types of Moving Averages are available for both FVI and the optional Moving Average of the FVI.

- ALMA (Arnaud Legoux Moving Average)

- EMA (Exponential Moving Average)

- SMA (Simple Moving Average)

- WMA (Weighted Moving Average)

**Notes**

This indicator is using the exact formula from http:mkatsanos.com/VFI.html where EMA has been taken as default value for FVI smoothing calculation.

- Cleaned script

The Volume Flow Indicator (VFI) indicator was first introduced in my June 2004 and is is based on the popular On Balance Volume (OBV) but with three very important modifications:

- Unlike the OBV, indicator values are no longer meaningless. Positive readings are bullish and negative bearish.

- The calculation is based on the day's median instead of the closing price.

- A volatility threshold takes into account minimal price changes and another threshold eliminates excessive volume.

- The indicator takes into account only the latest 6 month volume action and not the entire data loaded in the chart.

**General Usage**

A simplified interpretation of the VFI is that values above zero indicate a bullish state and the crossing of the zero line is the trigger or buy signal.

The strongest signal with all money flow indicators is of course divergence.

The classic form of divergence is when the indicator refuses to follow the price action and makes lower highs while price makes higher highs (negative divergence). If price reaches a new low but the indicator fails to do so, then price probably traveled lower than it should have. In this instance, you have positive divergence.

**Default settings**

- 130 VFI Length

- 0.2 Coef

- 2.5 Volume cutoff

- 3 Smoothing Period

E.g. 40 or 18 Length to achieve different results like in the examples.

**Trend Visualisation**

Optional: If the trend direction is

*DOWN*the moving average is painted red. If the trend direction is

*UP*the moving average is painted in green.

If the movement is

*FLAT*then the color is grey.

**Moving Averages**

4 different types of Moving Averages are available for both FVI and the optional Moving Average of the FVI.

- ALMA (Arnaud Legoux Moving Average)

- EMA (Exponential Moving Average)

- SMA (Simple Moving Average)

- WMA (Weighted Moving Average)

**Notes**

This indicator is using the exact formula from http:mkatsanos.com/VFI.html where EMA has been taken as default value for FVI smoothing calculation.

Changelog:

* removed compile error failing on ternary operator with anonymous functions

* removed compile error failing on ternary operator with anonymous functions

Note di rilascio:

**Changelog:**

- Updated script to Pinescript v5

- Updated Settings UI Panel

Visit ubertradingsystems.com or send a direct message for information about indicator access.