A volume money-flow oscillator built to patch the weak spots of OBV and MFI. It fuses where the close sits within the day with how the typical price moves day to day, signing volume only when the move clears a volatility-based threshold. The swing around zero traces the crowd's real conviction.
FVE (Finite Volume Element) is a volume money-flow oscillator devised by Markos Katsanos.
It was born from dissatisfaction with two established indicators.
OBV throws a day's entire volume to the plus or minus side based only on whether the close finished a hair above or below the prior close. How violently price moved during the session is discarded.
Typical money-flow indicators (MFI, Chaikin Money Flow) take the opposite shortcut: they apportion volume only by where the close landed inside the high-low range. This time it is the day-to-day progress of price (the change from the prior day) that tends to be ignored.
FVE tries to seal both gaps at once. Its core idea is to let an intraday element (where the close sits relative to the typical price) and a day-to-day element (the change in typical price from yesterday) live inside one formula.
It then adds a volatility-based threshold so that tiny wiggles are not counted. Only on days when the combined move clears that threshold does volume receive a plus or minus sign. Small flutters that stay inside the threshold are treated as zero and ignored.
The signed volume is normalized by average volume and accumulated. The resulting line swings around zero: above zero means accumulation, below zero means distribution.
In lineage, FVE is a refinement of Chaikin Money Flow, sharpened with a threshold and noise handling.
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