Volume Decomposition Index
- Indicators
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Andrei Muzov
Разработал алгоритм для расчета объема покупок и продаж актива. Volume Decomposition Index (VDI). - Version: 2.0
- Updated: 11 September 2025
Volume Decomposition Index (VDI)
VDI is a proprietary volume analysis indicator designed to identify the strength and direction of price movement based on the decomposition of volume into buying and selling activity.
The indicator visualizes the ratio between buys and sells by projecting candlestick price data onto its volume, allowing traders to gain a more comprehensive view of market dynamics — namely, how much volume was driven by buyers and how much by sellers.
Calculations are based on all available exchange data, making the indicator analytically complete and capable of providing deep insights into market trends.
Knowledge of trading volumes is a key factor in understanding price movements in the market. This indicator provides you with exactly that information.
Key Features
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Single adjustable parameter — period (default = 18), which determines over how many bars the buy and sell volumes are calculated.
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Main line formula:
Positive Volume / Negative Volume,
allowing you to assess whether buying or selling activity dominates over a selected range. -
Informative visualization:
Two lines — the VDI Line (main) and Strength Line (supporting) help to estimate the strength of the current trend. -
Customizable period setting:
Flexible adjustment of the summation period to suit various strategies. -
Horizontal reference level at 1.0:
Serves as a neutral balance point between buyers and sellers. -
Compatible with all timeframes and trading instruments.
How to Interpret
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Value > 1.0 — indicates upward pressure (bullish signal).
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Value < 1.0 — indicates downward pressure (bearish signal).
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Value ≈ 1.0 — neutral zone, buyer/seller forces are balanced.
