Volume Confirmation

Formula

Ratio of 21-day to 63-day average volume, signed by the direction of the 1-month return

Interpretation

A price move on rising relative volume is read as more likely to reflect genuine participation than a thin, low-conviction drift.

What good looks like

Elevated relative volume moving in the same direction as the price trend.

What bad looks like

Elevated relative volume moving against the trend, or a trend on thinning volume.

Typical range

Z-scored, capped at roughly ±3.

Limitations

Volume data quality varies by vendor and by ticker liquidity; thinly traded names produce noisier ratios.

How OmniSignal uses it

Formalizes a standard technical-analysis confirmation heuristic as a factor rather than leaving it to visual chart-reading.

Where it enters the score

Momentum family

References

Standard volume-price technical analysis