The Intermediate-Term Volume Momentum Oscillator (ITVM) was developed to give us a new perspective of volume similar to that offered by the ITBM (IT Breadth Momentum) Oscillator on breadth.

It is derived from the McClellan Volume Oscillator which is calculated the same as the McClellan Advance-Decline Oscillator, except we begin with a ratio of Advancing Volume to Declining Volume instead of Advances and Declines. Specifically we subtract NYSE Declining Volume from Advancing Volume, then divide the result by NYSE Total Volume. We next multiply that result by 1000 so we are working with whole numbers:

((Adv Vol - Decl Vol) / Total Vol) * 1000.

The rest of the calculations are the same as for the McClellan Oscillator and ITBM.

The ITVM is a new indicator and we do not currently have historical charts for it.

The ITVM is a barometer of volume. The absolute value indicates how overbought/oversold the market is. Direction is most important because it indicates whether the market is getting stronger (rising) or weaker (falling). The best condition is for the ITBM to be rising above its 10-EMA, and the worst is falling below its 10-EMA. It is extremely negative if the ITBM tops below its 10-EMA and below the zero line.