OPEN-SOURCE SCRIPT
Negative Volume Index Oscillator [ZOM]
Negative Volume Index Oscillator [ZOM] (NVI Oscillator) is a momentum-based indicator designed to highlight underlying market activity by focusing on periods of declining volume. Built around the classic Negative Volume Index (NVI), this tool transforms the raw data into a normalized oscillator, making it easier to interpret shifts in trend, momentum, and potential reversals.
The oscillator measures the deviation of smoothed NVI from its long-term average, presenting this relationship as a percentage-based value centered around a zero line. This allows traders to quickly identify whether price action is supported by quieter, more “informed” market participation, which is often associated with institutional positioning.
A configurable signal line is included to help identify momentum shifts through crossovers and crossunders. These interactions can be used to spot early trend changes or confirm continuation depending on market context.
To provide additional structure, the indicator includes optional volatility bands derived from standard deviation. These bands help identify statistically stretched conditions where price may be overextended, increasing the likelihood of mean reversion or consolidation.
The script also features built-in divergence detection, comparing oscillator movement to price action. Bullish and bearish divergences are automatically identified, offering early warning signals of potential reversals when momentum and price begin to disagree.
Key features include:
- Oscillator derived from smoothed Negative Volume Index
- Signal line with multiple moving average options
- Volatility bands for identifying extreme conditions
- Histogram visualization for momentum strength
- Automatic bullish and bearish divergence detection
- Crossover and crossunder markers for signal clarity
- Fully customizable smoothing, lengths, and visual settings
This indicator is designed to complement price action analysis by providing a deeper view into momentum behavior during low-volume conditions, helping traders identify potential turning points and confirm trend strength.
The oscillator measures the deviation of smoothed NVI from its long-term average, presenting this relationship as a percentage-based value centered around a zero line. This allows traders to quickly identify whether price action is supported by quieter, more “informed” market participation, which is often associated with institutional positioning.
A configurable signal line is included to help identify momentum shifts through crossovers and crossunders. These interactions can be used to spot early trend changes or confirm continuation depending on market context.
To provide additional structure, the indicator includes optional volatility bands derived from standard deviation. These bands help identify statistically stretched conditions where price may be overextended, increasing the likelihood of mean reversion or consolidation.
The script also features built-in divergence detection, comparing oscillator movement to price action. Bullish and bearish divergences are automatically identified, offering early warning signals of potential reversals when momentum and price begin to disagree.
Key features include:
- Oscillator derived from smoothed Negative Volume Index
- Signal line with multiple moving average options
- Volatility bands for identifying extreme conditions
- Histogram visualization for momentum strength
- Automatic bullish and bearish divergence detection
- Crossover and crossunder markers for signal clarity
- Fully customizable smoothing, lengths, and visual settings
This indicator is designed to complement price action analysis by providing a deeper view into momentum behavior during low-volume conditions, helping traders identify potential turning points and confirm trend strength.
Skrypt open-source
W zgodzie z duchem TradingView twórca tego skryptu udostępnił go jako open-source, aby użytkownicy mogli przejrzeć i zweryfikować jego działanie. Ukłony dla autora. Korzystanie jest bezpłatne, jednak ponowna publikacja kodu podlega naszym Zasadom serwisu.
Wyłączenie odpowiedzialności
Informacje i publikacje nie stanowią i nie powinny być traktowane jako porady finansowe, inwestycyjne, tradingowe ani jakiekolwiek inne rekomendacje dostarczane lub zatwierdzone przez TradingView. Więcej informacji znajduje się w Warunkach użytkowania.
Skrypt open-source
W zgodzie z duchem TradingView twórca tego skryptu udostępnił go jako open-source, aby użytkownicy mogli przejrzeć i zweryfikować jego działanie. Ukłony dla autora. Korzystanie jest bezpłatne, jednak ponowna publikacja kodu podlega naszym Zasadom serwisu.
Wyłączenie odpowiedzialności
Informacje i publikacje nie stanowią i nie powinny być traktowane jako porady finansowe, inwestycyjne, tradingowe ani jakiekolwiek inne rekomendacje dostarczane lub zatwierdzone przez TradingView. Więcej informacji znajduje się w Warunkach użytkowania.