FSVZO | QuantumResearch

May 28

🔊 FSVZO | QuantumResearch

Fourier Smoothed Volume Zone Oscillator

A proprietary hybrid oscillator blending momentum and frequency domain analysis

🧠 What Makes It Unique?
FSVZO introduces a novel approach to the classic Volume Zone Oscillator (VZO) by incorporating Discrete Fourier Transform (DFT) into both price and volume streams before calculating the VZO. This technique extracts the dominant frequency components from the market, resulting in a more stable and noise-filtered signal.

This hybrid approach of signal processing + volume-based trend detection sets it apart from traditional oscillators that only operate in the time domain.

⚙️ Core Concepts:

📈 Volume Zone Oscillator (VZO):
Built on a directional volume engine that emphasizes bullish/bearish pressure via smoothed volume flows.

🔍 Fourier Transform Layer:

A Discrete Fourier Transform is applied to the most recent price and volume arrays to isolate dominant cyclic components and suppress noise.

🧠 Trigger Line Comparison:

A smoothed EMA of the oscillator is used as a signal line for crossovers, highlighting momentum shifts.

🔍 Key Features:

✅ Fourier-Decomposed Source Data
✅ Adaptive Smoothing of the Signal Line
✅ Color-coded Trend Conditions
✅ Customizable Thresholds for Overbought/Oversold Regions
✅ Background Fill Zones for Visual Context
✅ Bar Color Overlays to Track Signal Transitions

📌 How to Use It:

When FSVZO > Trigger Line, bullish volume momentum dominates (green bars).

When FSVZO < Trigger Line, bearish volume momentum dominates (red bars).

Use ±60/90 zones as overbought and oversold thresholds.
Great for momentum confirmation, mean-reversion plays, and early trend detection when used with price action or moving averages.

⚠️ Designed For:

Momentum traders looking for a volume-aware oscillator
Analysts seeking signal stability through frequency filtering
Traders wanting a modern, noise-reduced alternative to RSI/MFI/VZO

⚠️ Disclaimer:
This script is for educational and research purposes only.
Past performance does not guarantee future results.
Always confirm with other indicators, price structure, and risk management.

May 30

Release Notes

Added alert function