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Technical analysisIntermediate8 lessons · about 45 min

Volume & Volatility Indicators

OBV, VWAP, MFI, the A/D line and CMF, volume profile, ATR, historical volatility, and Donchian / Keltner Channels.

For: learners who want to read money flow and volatility

Suggested first

This course uses ideas from the courses below (optional; you can start right away).

  1. 1

    On-Balance Volume (OBV)

    No sign-up needed

    Add the volume on up days and subtract it on down days: the running OBV roughly shows whether money is flowing in or out.

  2. 2

    Volume-Weighted Average Price (VWAP)

    Text version

    The "average cost" of every trade today. Institutions often use it to judge whether they bought expensively or cheaply.

  3. 3

    Money Flow Index (MFI)

    Text version

    An RSI with volume: also 0–100, overbought above 80 and oversold below 20.

  4. 4

    Volume Profile

    Text version

    Count volume by price instead of by time: which price level traded the most?

  5. 5

    Average True Range (ATR)

    Text version

    How much does a candle move on average? ATR doesn't judge direction, only volatility, and it's most often used to set stops.

  6. 6

    Donchian and Keltner Channels

    Text version

    One uses the highest high and lowest low, the other uses ATR: two channels, two kinds of breakout logic.

  7. 7

    Historical Volatility: Volatility Clusters

    Text version

    Turn how spread out the last N days' moves were into an annualized percentage. Calm is often followed by a storm, but it doesn't tell you the direction.

  8. 8

    The A/D Line and Chaikin Money Flow (CMF)

    Text version

    Look not just at whether price closed higher than yesterday, but where the close landed within the day's range: a close near the high means buyers were strong, near the low means sellers were.

Volume & Volatility Indicators: 8 animated lessons · 72lab