A volume money-flow indicator built to fix OBV's two weak spots: noise and outliers. By discarding tiny price moves and capping any single wild volume bar, the cumulative line keeps only the flows that actually mean something.
The Volume Flow Indicator (VFI) is Markos Katsanos' practical reworking of OBV into a volume money-flow tool.
OBV assigns a day's entire volume to plus or minus based on one thing only: whether the close is above or below the prior close. That bluntness is also its weakness. OBV reacts even to noise-level price moves, and a single abnormal volume bar can make the cumulative line jump.
VFI adds two filters on top of that idea. The first is a noise threshold that ignores the volume when the price change is too small to matter. The second is a volume cap that prevents one extreme bar from dominating the whole line.
So VFI inherits OBV's core notion of accumulating directional volume, but it decides what to accumulate and what to throw away on a volatility basis.
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NASDAQ:AAPL
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