VAO measures whether volume is accumulating (rising) on up bars or down bars. It creates an oscillator that swings around zero based on whether volume favors advances or declines, revealing the strength of the current trend.
Key Use: Confirm whether rising volume is supporting or opposing the current price trend.
VAO = (Up Volume EMA - Down Volume EMA)
Typically: 34-period and 55-period EMAs
Above Zero
More volume on up days - bullish accumulation
Below Zero
More volume on down days - bearish distribution
Trend Confirmation
Rising price needs VAO above zero for confirmation.
Divergence Detection
Price up but VAO below zero = potential reversal ahead.
Momentum Shifts
Zero-line crosses signal changes in volume accumulation direction.
✓ Advantages
⚠ Limitations