Directional Volume Index

cybernetwork Updated   
A new idea of mine that I am presently experimenting on for my trades.

The Directional Volume Index (DVI) is defined as follows:
DVI = VWMA(len1) - SMA(len2), where by default, len1==len2

The sign of the DVI provides volume confirmation of the direction of the price trend.
The magnitude of the DVI provides the volume confirmation of the strength of the price trend.

The novel aspects and principles of this indicator and this source code are the property of © cybernetwork.
This indicator and script is free for the TV community to use.

Release Notes:
Removed redundant input.
Release Notes:
Updated smoothing to VWMA smoothing.
Release Notes:
Updated inputs.
Release Notes:
Tweaked VWMA smoothing parameter.

NOTE: The accompanying analysis package is now republished as Directional Volume Index (DVI) {PREMIUM}.
Release Notes:

  • Added Stdev based thresholds.

    The DVI piercing the Stdev boundary suggests overexuberance in the corresponding direction.
  • Tightening of the DVI-Stdev bands can suggest the possible incoming of major move ahead.
Release Notes:
Simplified script.
Release Notes:
Updated vwma smoothing default.
Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.


The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

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