X VFI (LB) w absorption

a variation of the On-Balance Volume (OBV) introduced by Markos Katsanos and further refined by LazyBear, is a robust volume-based momentum oscillator designed to measure the strength and direction of money flow. It utilizes advanced filtering mechanisms to enhance signal quality for active trading environments. This version has added an absorption feature.

Core Functionality and Enhancements
Filtered Volume Flow: The VFI is calculated using the Typical Price (HLC/3) and incorporates filters for Volatility (coef) and Excessive Volume (vcoef). This ensures the indicator responds only to price changes supported by sustained, relevant volume, filtering out market noise and anomalous spikes.

Zero-Line Bias: VFI values above zero indicate net accumulation (bullish flow), while values below zero indicate net distribution (bearish flow).

Signal Line Timing (vfima): The Exponential Moving Average (EMA) of the VFI acts as the Signal Line. Crossovers between the VFI (fast line) and the Signal Line are primary triggers for trade entries and exits.

Absorption/Distribution Signals
This customized version introduces unique features to visually isolate periods where underlying volume conviction contradicts immediate price action—the most powerful setups for reversals and strong continuations.

Absorption/Distribution Highlighting:

The histogram's color is dynamically changed to highlight hidden buying or selling pressure:

(Absorption Signal): Indicates strong positive VFI momentum occurring on a bearish (down) candle. This signals aggressive buying absorption of supply, where large traders are accumulating positions despite brief selling pressure, often preceding a sharp upward move.

(Distribution Signal): Indicates strong negative VFI momentum occurring on a bullish (up) candle. This signals aggressive selling distribution into demand, where large traders are offloading positions into brief rallies, often preceding a sharp downward move.

Volume-Filtered Conviction: The visual intensity (transparency) of the signal color is adjusted based on a Volume Filter (minVolFilter). Darker, solid colors denote high-conviction signals supported by above-average volume, while transparent colors indicate lower-conviction signals.

Histogram Magnification:

The magnification input allows users to visually increase the height of the histogram bars (e.g., 2x). This enhances the immediate visual recognition of momentum acceleration or deceleration.