Volume Flow Indicator

The Volume Flow Indicator (VFI), developed by Markos Katsanos, is based on the popular On Balance Volume (OBV) but features three important enhancements:

• VFI values provide clear signals: positive readings indicate bullish conditions, while negative readings indicate bearish conditions.
• The calculation is based on the day's median price (typical price) instead of the closing price.
• A volatility threshold filters out minimal price changes, and another threshold eliminates excessive volume spikes.

A simplified interpretation of the VFI:

• Values above zero suggest bullish momentum, with a zero-line crossover serving as a buy signal.
• Divergence is considered the most powerful signal for money flow indicators.

Options are available to plot a signal EMA, and all parameters are fully configurable.

Markos recommends a coefficient of 0.2 for day trading and 0.1 for intra-day trading.