(except OBV), price change doesn?t come into the equation for the FVE
(price is not multiplied by ), but is only used to determine whether
money is flowing in or out of the stock. This is contrary to the current trend
in the design of modern indicators. The author decided against a
price-volume indicator for the following reasons:
- A pure indicator has more power to contradict.
- The number of buyers or sellers (which is assessed by ) will be the same,
regardless of the price fluctuation.
- Price-volume indicators tend to spike excessively at breakouts or breakdowns.
This study is an addition to FVE indicator. Indicator plots different-coloured
bars depending on .
You can change long to short in the Input Settings
Please, use it only for learning or paper trading. Do not