PFO Price Flow Oscillator

PFO Price Flow Oscillator – MT5 Indicator

The PFO Price Flow Oscillator is a highly advanced tool designed to help traders anticipate explosive price movements and identify market momentum with precision.One of its most powerful features is the ability to anticipate explosive price moves before they occur, giving traders an early edge in volatile markets. Unlike standard oscillators, the PFO does not rely on price alone—it integrates multiple market factors to provide clear, actionable insights in volatile or trending conditions. It is completely free and suitable for Forex, commodities, indices, and more.

How the Indicator Works What It Relies On:

The PFO oscillator combines a sophisticated multi-factor analysis to calculate a normalized value between 0 and 100. Here’s what it depends on:

ATR (Average True Range):

Measures market volatility and the typical range of price movement.

The PFO uses ATR to scale its readings, ensuring signals reflect true market activity, not just small fluctuations.

Moving Average (EMA/SMA):

Tracks the underlying trend by comparing price to a smoothed average.

Serves as a momentum baseline to detect divergence and validate trend strength.

Volume Analysis:

Compares current volume (or tick volume) against a rolling average over a specified period.

Higher relative volume increases the indicator’s responsiveness to strong price moves.

Price Action Factors:

Body Size vs Range: Distinguishes strong candlestick movements from small or indecisive bars.

Wick Absorption: Evaluates upper and lower wicks to detect buying/selling pressure.

Directional Bias: Differentiates bullish and bearish bars to adjust the oscillator value accordingly.

Momentum vs ATR:

Measures how far the current price deviates from the moving average relative to ATR.

Allows the oscillator to spike aggressively when strong movements occur.

Price-Move Weighting:

Amplifies readings during significant price changes between bars.

Key factor that allows the PFO to anticipate explosive price movements before they happen.

Smoothing & Normalization:

Raw data is smoothed using EMA to reduce noise and small fluctuations.

Z-score normalization and a logistic function convert raw values to a 0–100 scale for easy interpretation.

Reading the Indicator:

Above 75: Strong bullish momentum; market likely to rise.

Below 25: Strong bearish pressure; market likely to drop.

Around 50: Neutral zone; market consolidation or indecision.

Key Features:

Integrates ATR, EMA/SMA, and rolling volume for multi-dimensional analysis.

Detects potential explosive price movements before they occur.

Smooth, noise-reduced readings for reliable signals.

Adaptive to market volatility with automatic normalization.

By combining volatility, trend, volume, and momentum, the PFO Price Flow Oscillator gives traders a complete view of market dynamics, helping them make early, informed, and confident trading decisions.