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I looked for this indicator in the public library and didn't find it so I thought I would offer it to anyone who felt like they would like to try it out. Frankly, the name caught my attention in one of my favorite books on volume "The Traders Book of Volume" by Mark Leibovit
"Created by Richard Arms Jr. and explained in an article he penned for Barrons's in 1998, it combines the daily spread of a stock or index and divides the daily volume by that number to see how many shares it needs to trade in order to move the issue through one point of its daily spread. This is usually considered a broad market indicator, but is useful for individual issues as well. On a historical basis more volume is required in order to generate a wider price swing at tops, while the opposite is true at bottoms. This is explained by the emotions of greed and fear. At tops there is complacency which requires ever greater volume to get prices to swing in wider ranges, while at bottoms fear can cause greater swings on relatively lower volume ."
--The Traders Book of Volume , by Mark Leibovit

This indicator is useful at identifying divergences and trend confirmation. It is also effective in shorter time-frames as well as much longer time frames. The original formula does not use any smoothing, but I have included it as I feel it dulls some of the shorter term sharp turns inherent in this indicator. There is also no adjustment to the length of Richard Arms' original, so I include it in case you feel you need to 'play' with the settings. I hope you all find it useful. Good trading all,
Shiroki
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//@version=2
// "Created by Richard Arms Jr. and explained in an article he penned for Barrons's in 1998, it combines the daily spread of a stock or index and 
// divides the daily volume by that number to see how many shares it needs to trade in order to move the issue through one point of its daily spread.
// This is usually considered a broad market indicator, but is useful for individual issues as well.  On a historical basis more volume is required in 
// order to generate a wider price swing at tops, while the opposite is true at bottoms.  This is explained by the emotions of greed and fear.  At tops
// there is complacency which requires ever greater volume to get prices to swing in wider ranges, while at bottoms fear can cause greater swings on 
// relatively lower volume."  
//     --The Traders Book of Volume, by Mark Leibovit
// This indicator is useful at identifying divergences and trend confirmation.  It is also effective in shorter time-frames as well as much longer time frames.
// The original formula does not use any smoothing, but I have included it as I feel it dulls some of the shorter term sharp turns inherent in this indicator.
// There is also no adjustment to the length of Richard Arms' original, so I include it in case you feel you need to 'play' with the settings.
study("YOYO index", shorttitle="YOYO", precision=0, overlay=false)
sm    = input(false,title="Smooth?")
ln    = input(10, title="Length",defval=10, minval=5)
yoyo  = sum((volume/1000)/((high-low)/high),ln)/ln
yo_ma = sm?ema(yoyo,3):yoyo
plot(yo_ma,color=teal, transp=0, linewidth=2, title="YOYO Index")
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