Volume DMAO [DCAUT]

█ Volume DMAO Indicator [DCAUT]

📊 OVERVIEW

The Volume DMAO (Dual Moving Average Oscillator) applies PPO-style calculation to volume data rather than price. It measures the percentage difference between fast and slow moving averages of volume, providing insights into volume momentum and market participation trends.

🎯 CONCEPTS

Signal Interpretation

• Positive Values: Current volume above historical average (expansion phase)
  
• Negative Values: Current volume below historical average (contraction phase)
  
• Rising Trend: Volume momentum accelerating (increasing participation)
  
• Falling Trend: Volume momentum decelerating (decreasing participation)
  

Primary Applications

• Volume Confirmation: Validate price movements with volume momentum analysis
  
• Divergence Detection: Spot potential reversals when volume diverges from price
  
• Trend Strength: Assess volume participation in price trends
  
• Entry/Exit Signals: Time trades based on volume momentum shifts
  

📋 PARAMETER SETUP

Input Parameters

• Fast Length: Period for fast moving average (default: 12)
  
• Slow Length: Period for slow moving average (default: 50)
  
• MA Type: Moving average algorithm (default: EMA)
  

📊 COLOR CODING

Histogram Colors

• Dark Green: Positive and rising (strong volume expansion)
  
• Light Green: Positive and falling (weakening volume expansion)
  
• Light Red: Negative and rising (recovering from volume contraction)
  
• Dark Red: Negative and falling (strong volume contraction)
  

💡 CORE VALUE

Unlike traditional volume indicators, Volume DMAO provides normalized percentage readings that:
- Enable comparison across different timeframes and instruments
- Reveal volume momentum changes before price movements
- Identify market phases through volume participation analysis