The Volume Flow Indicator (VFI), published by Markos Katsanos, is an evolution of On-Balance Volume that ignores micro-moves. Each bar's log return is compared to a noise threshold derived from a rolling standard deviation of returns; bars inside the threshold contribute zero, bars above it contribute +volume, bars below contribute −volume. The series is then smoothed and normalised by average volume.
Reads are simple: VFI > 0 indicates net accumulation, VFI < 0 indicates net distribution, and zero-line crossings are the headline signal. Divergence between VFI and price is treated the same way as RSI divergence — a warning that the move is running on thinner participation than it looks.
Compared to OBV, VFI is much less noisy on low-volatility bars and more honest about gap bars, but it has more parameters to tune.
Example
On a trending BTC day, price prints three higher highs while VFI flattens then turns down through zero — a bearish divergence flagging that the rally is losing real volume support.
How Noon Barbari uses Volume Flow Indicator (VFI)
Every concept here is implemented in the platform. Open the relevant docs or tool to see it in action.
Use VFI in noonbarbari →Related terms
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Volume-weighted average price (VWAP)
Average price weighted by volume — the institutional benchmark for intraday fills.
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Volume moving average
A moving average of bar volume, used to detect above-average participation.
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Relative strength index (RSI)
Momentum oscillator that ranges 0–100 based on the ratio of gains to losses.
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MACD
Trend-momentum hybrid: difference of two EMAs, plus a signal-line EMA and histogram.