"Volume Precedes Price is the conceptual idea for the oscillator."
"The main idea of the VZO was to try to change the OBV to look like an oscillator rather than an indicator, also to include time; primarily to identify which zone the volume is located in during a specific period[.]"
How to read this indicator:
Positive reading -> bullish
Negative reading -> bearish
-60 or 60 is seen as the limit of the oscillator range, and a pullback should be expected from there.
Plus and minus signs have been added to the top and bottom for VZO and PZO, with an adjustable threshold to trigger.
Alert conditions have been added to this indicator for ease of use.
Volume Zone Oscillator, write-up by the author (recommended reading) http:capitalsynergy.com/resources/IFTA09VZO.pdf
- Option to change the overly bright background fill (to light, dark or none) - Option to completely remove rows
Release Notes
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> -> >=
Release Notes
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Update notes: -Added changeable source (where previously close was the only option) -Removed PZO label alerts -Moved VZO label alerts to the bottom of the indicator for visibility -Changed + to mean oversold and - to mean overbought -Removed 100/-100 levels -Colors are mildly different
The reason for adding a changeable source is that a daily close that is positive vs. negative doesn't paint the price action that played out intraday. While not perfect, hl2 and hlc3 as a source seem to do a much better job; however, since nobody uses VZO with hl2 as source it would be wise to either check both sources or only use close to understand what other people are seeing.
Release Notes
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- Consolidated label/alarm threshold triggers - Clarified names of the alarms; you should more often than not be looking to use "VZO Overbought" or "VZO Oversold"
Release Notes
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- Now with a RSI normalized to (100) - 100.
- +/- signs removed in favor of highlights. If you prefer the older version, it's located within the script.
Release Notes
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Version 2.1 - Added a moving average filter to price source. Its usage is mainly for lower timeframes where VZO jitters too much to be useful.
Possible values are none (default), Hull, exponential, and simple. There is an option to change its length. Keep in mind that longer values mean it is a smoother average but introduces heavy lag into the oscillator.
If you do decide to use a MA filter, it would be wise to stick to the same MA type and length. Cases where you would want to use different types are on different timeframes and different categories of trade.
And are the Buy and Sell signals displayed in Real Time?
netrin
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I like this a lot. The indicator is gorgeous and your code is beautifully written as always. Going to add this to my charts for a few days and continue to test different TFs. Looking great :)
MastermindCam
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Powerful stuff
DreamsDefined
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Great script. I've been a fan of the VZO/PZO for years, and the colour coding you've done is great. Awesome work!
NeoButane
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Thank you :)
itsjhow
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Awesome work dude. Love this so much
Flavivs2020
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Very nice indicator.
kelhemry
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Great work, thank you. I would like to ask you for mtf version, if possible to choose time frame. thank you
MBBT
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Great script, thank you for sharing. What is the purpose of the blue dots overlayed on some of the signals?
And are the Buy and Sell signals displayed in Real Time?