What is Up-Down Volume Oscillator?

Up-Down Volume Oscillator is based on the smoothed difference between Up and Down Volumes in NYSE Composite. The oscillator is computed using the Exponential Moving Average (EMA) of the daily ordinal difference of up volume (volume of stocks which gained in value) from down volume (volume of stocks which fell in value) over 39 trading day and 19 trading day periods.

Overbought zone is above 100. It usually indicates the continuation of the current bullish trend. The upward momentum is very strong. The investors can expect to see more strong upward moves. The market has not reached short-term new high yet. Meanwhile, if the reading turns down to the bearish zone, a sell signal will be generated.

Bullish zone is from 25 to 100. Bullish condition usually suggests the market is healthy overall, and the upward momentum is relatively strong. The investors can better determine whether the bullish trend is accelerating or decelerating by comparing the readings of past days.

Neutral zone is from -25 to 25. Neutral condition usually indicates market’s uncertainty or indecision. Both the selling pressure and buying momentum are not strong. The market needs more time to make a decision in the movement direction.

Bearish zone is -100 to -25. Bearish condition suggests the market is not healthy overall, and the strength of the bull is weak. The investors can better determine whether the bearish trend is accelerating or decelerating by comparing the readings of past days.

Oversold zone is below -100. Oversold condition usually indicates the continuation of current bearish trend. The market is very unhealthy and the downward pressure is very heavy. The investors should be cautious of the market turmoil. Meanwhile, if the reading turns up and leaves the oversold zone, a buy signal will be generated.

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