---
title: Volume Zone Oscillator
description: "**Volume Zone Oscillator (VZO)** combines volume data with price movement to highlight market pressure. Acts as an oscillator, typically ranging from -100 to +100. VZO separates volume into positive and negative zones based on price direction, helping to identify overbought/oversold…"
url: "https://www.overcharts.com/en/helpcenter/docs/volume-zone-oscillator/"
updated: "2025-04-22"
category: Indicators
---

# Volume Zone Oscillator

**Volume Zone Oscillator (VZO)** combines volume data with price movement to highlight market pressure. Acts as an oscillator, typically ranging from -100 to +100.

VZO separates volume into positive and negative zones based on price direction, helping to identify overbought/oversold conditions and possible trend shifts.

## **Calculation Formula**

VZO is calculated as follows:

1. ****Positive Volume (PV)****
   If price change is positive:
   `PV = Volume`
   Else:
   `PV = 0`
2. ****Negative Volume (NV)****
   If price change is negative:
   `NV = Volume`
   Else:
   `NV = 0`
3. ****Total Volume (TV)****
   `TV = PV + NV`
4. ****Adjusted Volume (AV)****
   `AV = PV - NV`
5. **Exponential moving averages (EMA)** over *N* periods:
   `EMA_AV = EMA(AV, N)`
   `EMA_TV = EMA(TV, N)`
6. **Final VZO calculation:**
   `VZO = (EMA_AV / EMA_TV) * 100`

**Period (N)** is user-defined. Default value: **14**, adjustable based on strategy or timeframe.

## **Interpretation**

| VZO Value | Meaning |
| --- | --- |
| **> +40** | Overbought zone. Possible bearish turn |
| **+15 to +40** | Bullish pressure. Uptrend in progress |
| **-15 to +15** | Neutral area. Potential consolidation |
| **-15 to -40** | Bearish pressure. Downtrend in progress |
| **< -40** | Oversold zone. Possible bullish turn |