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 …