Real author:

Vadim Shumiloff

The indicator is the development of the idea of using the Normalized Volume.

First, the normalized volume values are now expressed as a percentage of the average value for the period. Consequently, the data on the chart can now take negative values, which means a lull in the market.

Another useful addition is coloring of the histogram columns depending on the value of the normalized volume.

• Gray color means that the current volume is less than the average for the period;
• Blue color means a small excess of the volume compared to the average for the period;
• Brown color means that the increase in volume has exceeded the 38,2% Fibo level compared to the average for the period;
• Red color means that the increase in volume has exceeded the 61,8% Fibo level compared to the average for the period;
• Yellow color (red in the figure below, so as not to blend with the background) means that the increase in volume has exceeded the 100% level compared to the average for the period.

Originally this indicator has been written in MQL4 and was first published in the Code Base on 19.06.2008.

Fig.1. The Normalized_Volume_Oscillator indicator