Which method can be used when analyzing the Volume Oscillator?

The Volume Oscillator is a technical analysis tool that measures the difference between two volume moving averages, typically a shorter and a longer one. By calculating the ratio of the fast moving average to the slow moving average, traders gain insights into the momentum and strength of volume trends. When the volume is increasing or decreasing, this method allows for the identification of potential buy or sell signals, as more significant changes in volume can hint at underlying price movements.

Plotting historical prices does not directly relate to the Volume Oscillator, as this focuses on price movements rather than volume dynamics. Calculating the standard deviation of volume is a different statistical analysis that provides insights into volume volatility but does not illustrate the relationship or trends that the Volume Oscillator aims to highlight. Using cluster volume alone also lacks the comparative aspect provided by the moving averages that is essential for the Volume Oscillator's functionality. Overall, the method of plotting the ratio of the fast to slow moving averages accurately captures the essence of what the Volume Oscillator is designed to convey.