Short-term Volume and Price Oscillator (SVAPO), developed by Sylvian Vervroot, combines both Price and Volume to construct an oscillator. In essence, when the price is trending up and volume is increasing, volume is added into the oscillator calculation. Conversely, when price is trending down and volume is increasing, volume will be subtracted from the oscillator. During consolidation phases when price and volume diverge, volume is not used to calculate the oscillator.
Some notes from his book: - A buy is indicated when the oscillator is below the green line but greater than yesterday’s value. A sell is indicated when the oscillator is above the red line but less than yesterday’s value. - The start of a short term up move is signaled by SVAPO when it turns up from below the lower standard deviation boundary. The same is valid for a short term down move when SVAPO turns down from above the upper standard deviation boundary. - Medium term turning points in an up or downtrend are mostly announced with a divergence between price and SVAPO. In a medium term uptrend, SVAPO will generally continue to move above the 0-reference line.
Rate of Change does make a difference in future price action with this indicator