Volume Flow Direction

The indicator is showing you volume flow direction - sustained flow in one direction (green or red dominance) suggests institutional participation that often precedes price movement in that direction. Use in combination with Cumulative Volume Histogram to spot divergences.

Key Interpretation Guidelines:

1. Trend Direction:
- Sustained green dominance suggests underlying buying pressure (bullish)
- Sustained red dominance suggests underlying selling pressure (bearish)

2. Signal Line Crossings (more important than just height):
- Bullish signal: When the combined buffer (white line) crosses above the green signal line
- Bearish signal: When the combined buffer crosses below the red signal line

3. Divergences (most powerful signals):
- Bullish divergence: Price makes lower lows but indicator makes higher lows (green area grows)
- Bearish divergence: Price makes higher highs but indicator makes lower highs (red area deepens)

Practical Trading Interpretation:

Current Market Bias:
- Bullish bias: Green area consistently above zero line
- Bearish bias: Red area consistently below zero line
- Neutral: Indicator oscillating around zero with neither color dominating

Confirmation Factors:
1. Signal Method Context: Your chosen signal method (Percentage, Fixed, etc.) determines the thresholds
2. Trading Style Setting: Different styles (Range/Trend/News) use different parameters
3. Timeframe Consistency: Longer dominance (multiple bars) is more significant than brief spikes