Level 3: Technical ToolkitInteractive
Volume Indicators Deep Dive
20 min readUpdated Mar 2026
Quick Check
Accumulation/Distribution line measures:
Chaikin Money Flow positive values suggest:
Accumulation/Distribution line measures:
Chaikin Money Flow positive values suggest:
Raw bars tell you how much was traded. Volume indicators transform that data into trend signals, institutional flow detection, and momentum confirmation. These four indicators reveal what money is doing.
OBV tends to lead price because institutions accumulate before price moves up and distribute before it moves down.
OBV Trendlines
Draw trendlines on the OBV chart itself. An OBV trendline break tends to precede a price trendline break.
Anchored VWAP: Anchor to the most recent significant low. If price stays above, everyone who bought the dip is profitable, creating a support floor. Below that level, those buyers feel pain and may sell.
A/D Line: More nuanced than OBV. A stock can close higher than yesterday (OBV adds) but near the day's low (A/D subtracts), revealing sellers were active despite the positive close.
MFI vs RSI
Stock at 52-week high. RSI = 72 (overbought). MFI = 65 (not overbought). Price momentum is strong, but volume flow does not fully support the move. MFI's volume inclusion gives additional context RSI misses.
Start with OBV, the simplest and most actionable. Add MFI if you want volume-enhanced RSI signals. Use anchored VWAP for specific event analysis.
Key Takeaways
Try This
Add OBV and MFI to a daily chart. Does OBV agree with the price trend? Any divergence? Is MFI overbought, oversold, or neutral? Compare with RSI on the same chart.
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This educational content is for informational purposes only and does not constitute financial advice. Past performance is not indicative of future results. Trading involves risk of loss. You should consult a qualified financial advisor before making investment decisions. Swingfolio is a trade journaling tool, not a financial advisory service.