# Volume Flow Indicator Volume Flow Indicator is an indicator on [Vela](https://vela.luxalgo.com/chart), our next-generation charting platform, written in Pine Script®. Builds Markos Katsanos' Volume Flow Indicator to its published specification: volume signed by the direction of typical-price changes, filtered through a volatility-scaled noise cutoff, capped at 2.5x average, and summed over 130 bars into a zero-centered oscillator. Includes the published 3-bar smoothing and an optional 5-period signal line for crossover reads. - Indicator in the LuxAlgo Library, by LuxAlgo, published Apr 17, 2026. - Access: free. - Concepts: [Volume Flow Indicator](https://www.luxalgo.com/library/concept/volume-flow-indicator/) (primary) - Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=sp1t2s7h3i6tye801th93jlk - Page: https://www.luxalgo.com/library/indicator/volume-flow-indicator/ **Volume Flow Indicator** implements the published [Volume Flow Indicator](https://www.luxalgo.com/library/concept/volume-flow-indicator/) construction exactly: volume takes its sign from each typical-price change, but only once the move exceeds an adaptive noise floor; contributions are capped at 2.5 times average volume; and the filtered sum over 130 bars is scaled by average volume into an oscillator around zero. The line prints bullish above zero and bearish below with a gradient fill toward the zero line, carries the published 3-bar smoothing, and adds an optional 5-period signal line. ## How to Trade the Volume Flow Indicator? - **Cross above zero**: net volume flow turning to accumulation, the regime read the design was built for. - **Cross below zero**: net flow turning to distribution. - **Signal-line crosses**: earlier, more frequent turns in flow for traders who want a faster read than the zero line alone. The 130-bar default targets position-horizon work (roughly half a trading year on dailies), so treat the line as a slow regime gauge among [volume and order-flow tools](https://www.luxalgo.com/library/family/volume-orderflow/). All four crossings carry alerts. ## Volume Flow Indicator Settings - **Length** (default 130): the summation window, also used for the scaling average volume; shorter responds faster but surrenders the design's steadiness. - **Cutoff Coefficient** (default 0.2): scales the volatility-based minimum change in typical price. Smaller moves count as noise and contribute no volume. - **Volume Cap Multiplier** (default 2.5): bounds each bar so one climactic print cannot distort the line for months. - **Volatility Length** (default 30): window of the deviation behind the adaptive cutoff. - **Smooth VFI** (default enabled, 3 bars): the published light smoothing. - **Signal Line** (default enabled, 5 bars): the crossover addition. - Style toggles cover the directional colors and the zero-line gradient fill. ## Frequently Asked Questions ### How is VFI different from Volume Price Trend? [Volume Price Trend](https://www.luxalgo.com/library/indicator/volume-price-trend/) is a cumulative line that credits volume on every close change, however small, and accumulates forever. VFI signs volume by typical price, discards sub-cutoff moves, caps climactic prints, and windows the sum so it oscillates around zero. ### Can I speed it up for swing trading? Shortening Length makes zero crossings more frequent, and the signal line already offers a faster read. Expect more whipsaw: the long window is what keeps the regime read steady. ### What does the cutoff actually filter? Each bar's cutoff is the coefficient times the 30-bar deviation of the typical-price log change, scaled into price units. Bars that moved less contribute zero volume, so drift never accumulates into the line. ## Related indicators - [Oscillator Matrix](https://www.luxalgo.com/library/indicator/luxalgo-oscillator-matrix/) (Money Flow Index): markdown at https://www.luxalgo.com/library/indicator/luxalgo-oscillator-matrix.md - [LuxAlgo - Screener (OSC)](https://www.luxalgo.com/library/indicator/luxalgo-screener-osc/) (Money Flow Index): markdown at https://www.luxalgo.com/library/indicator/luxalgo-screener-osc.md - [Delta ZigZag](https://www.luxalgo.com/library/indicator/delta-zigzag/) (Weis Wave Volume): markdown at https://www.luxalgo.com/library/indicator/delta-zigzag.md - [Price Zone Oscillator](https://www.luxalgo.com/library/indicator/price-zone-oscillator/) (Volume & Order Flow): markdown at https://www.luxalgo.com/library/indicator/price-zone-oscillator.md - [OBV Divergence](https://www.luxalgo.com/library/indicator/obv-divergence/) (Volume & Order Flow): markdown at https://www.luxalgo.com/library/indicator/obv-divergence.md - [Smart Money Index](https://www.luxalgo.com/library/indicator/smart-money-index/) (Volume & Order Flow): markdown at https://www.luxalgo.com/library/indicator/smart-money-index.md - [Trade Volume Index](https://www.luxalgo.com/library/indicator/trade-volume-index/) (Volume & Order Flow): markdown at https://www.luxalgo.com/library/indicator/trade-volume-index.md - [Demand Index](https://www.luxalgo.com/library/indicator/demand-index/) (Volume & Order Flow): markdown at https://www.luxalgo.com/library/indicator/demand-index.md --- Source: https://www.luxalgo.com/library/indicator/volume-flow-indicator/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/