Indicator VFO (Volume Flow Oscillator) is based on standard indicator OBV (On Balance Volume). It was described in the Technical Analysis of Stocks & Commodities magazine in June, 2004.

Its values above zero are bullish and indicate accumulating, while those below zero indicate distributing.

Divergences between the price and the indicator values may indicate a forthcoming change in the trend.

The indicator has four configured parameters:

• Period - calculation period;
• Dev Coefficient - standard deviation coefficient;
• Vol Coefficient - yesterday's volume impact factor;
• Smoothing period - smoothing period.