Volume Oscillator (VO) – FX Replay Guide
The Volume Oscillator (VO) in FX Replay compares short-term and long-term volume to measure volume momentum. It’s perfect for confirming breakouts, avoiding low-conviction trades, and enhancing your bias filters during session-based backtesting.
How to Use It in FX Replay
Add the Volume Oscillator:
- Open the Indicators panel.
- Search for “Volume Oscillator” or “VO.”
- Apply it with default settings (e.g., 14-period short MA vs 28-period long MA) or tweak based on your trading timeframe.
Read the VO Line:
- VO > 0 and rising = Bullish volume momentum → prioritize long trades.
- VO < 0 and falling = Bearish volume trend → prioritize short trades or skip longs.
- Flat/declining VO = No clear momentum → trade with caution.
Crossovers = Trade Triggers:
- Bullish Entry: VO crosses above zero while price breaks structure, VWAP, or retests FVG.
- Bearish Entry: VO drops below zero with price rejecting key level or breaking down.
Strategy Integration
Combine VO with:
- SMMA, VWAP, Supertrend → for trend alignment.
- RSI or MACD → for confirming momentum cross signals.
- Use VO to filter out flat/weak breakouts where price leads but volume lags.
Backtesting Tips:
Tag trade setups during playback:
- “VO aligned + breakout”
- “VO cross + divergence”
- “VO fading after trend peak”
Then compare filtered vs. unfiltered trade performance to gauge effectiveness.
Pro Tip:
In FX Replay, the Volume Oscillator helps you trust the real breakouts and skip the fakeouts.
If price breaks structure but VO is fading → step back.
If VO crosses above zero with price expansion → that’s your green light.
Best VO combos:
- NY or London session opens
- Liquidity sweeps
- FVG reentries
- Trend tools like TEMA or SMMA
