Volume indicators, explained for Indian traders
Volume indicators reveal the conviction behind a price move — whether a rally is backed by real buying or running on fumes. They turn raw traded quantity into a read on accumulation, distribution and the fair intraday price.
What are volume indicators? Volume indicators combine price with traded quantity to measure the participation and conviction behind a move. OBV, VWAP, Money Flow Index, Chaikin Money Flow and Accumulation/Distribution are the key tools — used to confirm trends and spot divergence between price and money flow.
On-Balance Volume OBV
VolumeOn-Balance Volume is a cumulative volume-flow indicator that adds the day's volume when price closes up and subtracts it when price closes down, turn…
Volume Profile
VolumeVolume Profile is a charting tool that plots volume horizontally at each price level over a chosen range, revealing the prices where the most trading…
Volume Weighted Average Price VWAP
VolumeVWAP is the volume-weighted average price of an instrument over the session, showing the true average price at which trading occurred and serving as …
Money Flow Index MFI
VolumeThe Money Flow Index is a volume-weighted momentum oscillator that measures buying and selling pressure on a 0–100 scale, effectively an RSI that inc…
Chaikin Money Flow CMF
VolumeChaikin Money Flow is a volume-flow oscillator that sums the money flow volume over a look-back period and normalises it, oscillating around zero to …
Accumulation/Distribution Line A/D
VolumeThe Accumulation/Distribution Line is a cumulative volume-flow indicator that adds each bar's money flow volume — volume weighted by where price clos…
Ease of Movement EOM
VolumeEase of Movement is a volume-based oscillator that relates price change to volume, oscillating around zero to show how easily price is moving — high …
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Frequently asked questions
What are volume indicators?
Volume indicators combine price with traded quantity to measure the participation and conviction behind a move. OBV, VWAP, Money Flow Index, Chaikin Money Flow and Accumulation/Distribution are the key tools — used to confirm trends and spot divergence between price and money flow.
Which volume indicator is best for Nifty?
There is no single best volume indicator — each has strengths in different conditions. Most Indian traders start with the most popular in this family and combine it with an indicator from another category for confirmation. Explore each below with its formula, settings and Nifty example.