Volume Indicators

Three indicators use volume. All three need the one rule on this page understood first, because it decides whether they are safe to use.

The index has no volume of its own — nobody trades "NIFTY" itself. So all three read volume from the futures contract, whatever your Reference Price setting says.

That is fine for OBV and MFI. It matters a great deal for VWAP, which is the next section.

VWAP is the average price of the day weighted by volume. It resets every morning and is watched closely by larger traders.

Here is the catch. VWAP is a price, and it is calculated on futures. If your strategy reads spot prices, comparing the spot price against a futures VWAP compares two different things — they differ by tens of points, and the rule would trigger at the wrong level without ever looking broken.

So the platform will not let you save it: a strategy using VWAP with Reference Price = Spot is refused, with a message telling you to switch to Futures.

That is not a limitation to work around. It is the only way the comparison means anything.

A running total that adds the candle’s volume when price closes up and subtracts it when price closes down. No settings.

The number itself is meaningless — only its direction matters. Rising OBV means volume is coming in on up-candles.

Use it by comparing it to itself: OBV is above OBV (previous candle) means buying pressure is building. Traders watch for it disagreeing with price as a warning sign.

Default period 14. Runs 0 to 100, so it reads much like RSI — but it weights each move by the volume behind it.

Below 20 is the oversold end, above 80 overbought.

It is a reasonable substitute for RSI when you want volume taken into account, and there is little sense in running both.