# Volume Zone Oscillator Volume Zone Oscillator is an indicator on [Vela](https://vela.luxalgo.com/chart), our next-generation charting platform, written in Pine Script®. Implements Khalil and Steckler's Volume Zone Oscillator: a 14-period EMA of close-signed volume divided by an EMA of total volume, bounded between -100 and +100. The published zone framework is drawn in the pane (regime boundaries at +5 and -5, overbought and oversold at 40 and -40, extremes at 60 and -60), with eight alerts covering regime starts, zone entries, and fades. - Indicator in the LuxAlgo Library, by LuxAlgo, published May 21, 2026. - Access: free. - Concepts: [Volume Zone Oscillator](https://www.luxalgo.com/library/concept/volume-zone-oscillator/) (primary) - Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=bzabgqk6iz7j9pmkvsuvhfig - Page: https://www.luxalgo.com/library/indicator/volume-zone-oscillator/ **Volume Zone Oscillator** is the definitive clean build of Khalil and Steckler's bounded volume gauge. Per the [Volume Zone Oscillator](https://www.luxalgo.com/library/concept/volume-zone-oscillator/) construction, each bar's full volume is credited to buyers on up closes and sellers on down closes, and a 14-period EMA of that signed series is divided by a 14-period EMA of total volume, times 100, bounding the reading between -100 and +100. The line prints bullish above zero and bearish below with a gradient fill, against the complete published level framework: regime boundaries at ±5, overbought/oversold at ±40, extremes at ±60. ## How to Trade the Volume Zone Oscillator? - **VZO holding above the Bullish Regime level (+5)**: turnover concentrating on up closes, a buyer-controlled tape. - **VZO holding below the Bearish Regime level (-5)**: sellers control the volume flow; between the two is neutral churn. - **Visits beyond ±40**: stretched volume pressure that tends to fade in ranging markets. The fade back through the level has its own alerts. - **Readings beyond ±60**: volume flow this one-sided is rarely sustained and often precedes exhaustion of the move that produced it. Eight alert conditions cover regime starts, overbought/oversold entries, the fades back out, and both extremes. ## Volume Zone Oscillator Settings - **Length** (default 14): EMA length for both signed and total volume; longer favors the regime-filter read, shorter makes overbought/oversold visits more frequent. - **Bullish Regime** (default 5) and **Bearish Regime** (default -5): the boundaries around zero separating controlled tape from churn. - **Overbought** (default 40) and **Oversold** (default -40): the stretch levels, most meaningful in ranges. - **Extreme Overbought** (default 60) and **Extreme Oversold** (default -60): the exhaustion watch levels. - Style inputs set the colors of the oscillator, regime lines, level lines, and zero line. ## Frequently Asked Questions ### How does VZO relate to the Price Zone Oscillator? The [Price Zone Oscillator](https://www.luxalgo.com/library/indicator/price-zone-oscillator/) applies the same signed-EMA ratio to closing price instead of volume. The two were introduced as companions. Reading them together asks whether price direction and volume concentration agree. ### Why is the oscillator pinned beyond an extreme? A persistent trend keeps close-signed volume one-sided, and bounded oscillators can sit past their levels for long stretches. The ±40 read is a ranging-market tool; in trends, lean on the regime levels. ### What if my symbol has no volume data? The build detects a chart with zero cumulative volume and displays a notice instead of a flat line. The oscillator requires a volume feed to mean anything. ## 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 - [Volume Flow Indicator](https://www.luxalgo.com/library/indicator/volume-flow-indicator/) (Volume & Order Flow): markdown at https://www.luxalgo.com/library/indicator/volume-flow-indicator.md --- Source: https://www.luxalgo.com/library/indicator/volume-zone-oscillator/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/