Volume Flow Indicator

Volume Flow Indicator implements the published 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. 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 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.