walterw

Here I want to share another perspective of all the volume concepts being discussed lately... I know maybe there is some sort of brain storm sensation going on as we at TL in a very short period of days are finding a wide variety of alternatives to setup the visual implementation of this same concepts... I went myself on the last 10 days thru a series of diferent ways to see the same on a chart.... trying to choose the most easy and "simplified" way to visualize my setup.... now WHAT SETUP ? that was my first question.... I see so many setups derived from the volume aproach that can get even an old seasoned trader a bit confused and with some decisions to carry on... you cant try to trade all the setups... that would be an overload of analisis that will end making mistakes most probably.... you have to stick to one good sound setup.... so I did yesteday make my mind on this... I like the "RETEST ON LOWER VOLUME" its being discussed on vsa originally and I think that lack of supply/demand on a retest makes a great sense to me as a very solid argument on the smart money reading... so.... now that I made myself with this setup.... who is the best Visual Graphic aid ? mmmmm I am on TS and as you all know TS can make you nuts on the almost infinite alternatives as you start playing with indicators and re-programing of them... so I came across thru a lot of diferent things, even shared some (like tick time box)... dont loose time with it (makes things complicated), and other things didnt share.... until I find a stupid paintbar created by TS called "Volume Gradient" kiss stuff (keep it simple stupid) that shows exactly what I want to see with no chart analisis overload... so this indicator takes into acct volume and bar range (vsa original concept ) and paints bars in three posible colors : yellow, orange, red ... yellow for more volume being present in relationship to range, orange a midlevel and red a low volume in relationship to range.... mmmmm nice, as I did stick to time bars now I have a simple tool that shows me this divergences of volume.... I share an example will add more, on the firts example you can see this yellow bar, then we get a retest making even a higher high with red/orange bars, that means lower volume and bum... down we went.... on the second example we have a yellow bar and then a retest with red/orange bars (lower volume) then bum up we went.... cant get more stupid.... still GREAT CONCEPT there... hope we can interact on this... cheers Walter.

This is a very interesting Paint bar study made by TS.... it will plot yellow bars on more volume related to bar range and red to smaller volume relative to range... orange is a midle point... I use it on a 2 min chart and it reveals very nice setups... specially vsa retest type setups, will make another thread on that.... enjoy cheers Walter. VOLUME GRADIENT.ELD

Tin : you want to take a look at this paintbars.... they are a "Volume Gradient" I did try it on a 2 min chart and they reveal very nice information... so far on the other paintbars I did try code I still get to much noise.... cheers Walter. VOLUME GRADIENT.ELD

Here we have a False Break out anatomy, as the break is done with small boxes .... PD some nuances : This tool can give a forex trader using tick charts a sinthetic volume reading derived from amount of activity per time period... giving them a chance to add volume analisis to their arsenal.... On the above book (a must read) there are some vsa concepts of dry up volume retest as many other volume strategies... Hope this helps, expect your interaction ¡¡ cheers Walter. (please dont go nuts, and dont forget to be with your family) have a nice weekend...

And here we see the anatomy af a coil break...

Here we have a lower low with lower volume... this are 2 minutes boxes...

yes Pivot, its interesting what this can bring,... you may notice I did use a tick chart, now you may actually aply it to a volume chart... if you use a very small time frame, the boxes are more easier to read (more bigger).... cheers Walter.

This is a free e-book shared by Richard W. Arms, Jr. on equivolume, his site is http://www.armsinsider.com I find very interesting insights to the equivolume aproach... as we TL members are digging on the volume issue from various perpectives and as we have now this "tick time box" tool, wich actually is an equivolume tool, I think this topic should be also covered... enjoy cheers Walter. Trading with equivolume.pdf

On this thread I want to show how I have been playing with the "Tick Time Box"... I believe it has some potencial if you like to take into acct volume on your trading... I first attach an image of a retest with smaller volume... the second image shows a big volume move with a small volume pullback followed by continuation.... there is much more... will keep adding.

the technicall name for that upside down hammer is shooting star... this link is a three session seminar from John Person : he combines pivot analisis with candlesticks.... the second part is about candlesticks and he makes enfasis in only two most easy and performing patterns like doji and hamers shootingstars... unfortunately he doesnt use volume, but I like his insights in this two candle formations that I find very simple and powerfull... think we all agree that combining key levels candlesticks and volume make a pretty decent aproach to trading... here is the seminar CBOT - Candlesticks, Pivot Points & Advanced Trading Techniques

Neal , I believe it must be usefull and adjusted to your trading style plus eventual updates as market conditions migrate.... cheers Walter.

one thing I did follow was trend big volume boxes followed by small volume (boxes )pullbacks followed by continuations.... also on huge boxes most get a nice bounce.... this is a sort of equivolume indicator....

Here is an indicator I found at Ts forums... I played a lot with it this week and I had a lot of exitment and complications with it... now for this volume analisis we all are looking at inTL this could be another input someone may find interesting... this is the "Tick Time Box" it will create a box every x time setting, and in ticks or volume based charts can be very usefull to know how many bars (volume) you got on that specific period... aplications can be multiple... so much I just whent back to my 2 min chart with old classic volume histogram... cant get better... any way I thought I would share... enjoy cheers Walter. pd : example chart is a 9tick chart of ym with 5 minutes boxes. TICK TIME BOX.ELD

januson : remember that the squeeze doesnt give the trigger... it just tells you the market context (sleeping or trending ) its the momentum or some other similar oscilator that gives the trigger... look at that cci how it put you on a short before the plunge... then you could cover on the first bar inside the bb.... just an idea.... cheers Walter.

Asa : I would be interested on that tick (ascii) data base... cheers Walter.

Ok, now that we are all very enthusiastic on volume from diferent perspectives, let me add this articles by Marting Pring to the knowledge arsenal : Pring Research - Technical Analysis, Educational CDs, Financial Newsletters and Charting Tools and PRING.COM - The site for the savvy technician. enjoy cheers Walter.

Januson : the formula of the ttm squezze posted on this forum is as follow : for the central part that takes the squeeze you got atr 20 with1.5 sd and bb 20 with sd 1.... when bb is inside atr you get red dots, outside blue dots....on the other the histogram is LinearRegValue(price-((Highest(H, Length)+Lowest(L, Length))/2 + xAverage(c,Length))/2,Length,0); where the length is 20... thats it.... on some software linear reg value = least square moving average... ( same uses woodie ).... cheers Walter. just in case you need more data this is the ts code : [LegacyColorValue = true]; {@@14439@@} {04/05/2006} //Updated by TradingDude, fixed "division by zero error" {02/16/2005} {Updated by Redlock} { Well, I have been working in this indicator. I have made a couple of changes: (1) that if the momentum changes direction, it changes color. (2) I have taken out the plotting of the alertline (3) have the dots plotted along the axis (4) Have changed the name of the indicator to BBSqueeze (cuts down on confusion). I think that you will find that it resembles what is on the TTM indicator.} {------------------------------------------------------------------} {mmillar, 05/12/2005 For anyone interested I made a small change to the indicator(s) above. I found that the indicator displayed fine for ES, YM etc but screwed up for FX - this is due to the number of decimal places used by the symbol. I just added a multiplier so the indicator is normalised across all symbols. Add the following lines... Vars: LHMult(0); if ( barnumber=1 ) then Begin LHMult=pricescale/minmove; end; And modify the following line so that it includes the LHMult variable... Plot3(value2*LHMult, "NickmNxtMove", color); } { Bolinger Band Squeeze (BBS) Indicator } { A variation of an idea by nickm001 (Originally coded by eKam) that when Bollinger Bands (BB) fit inside the Keltner Channel (KC), a breakout is about to occur. It works on longer term charts, such as 15 minute to daily charts. This code creates an indicator that plots the ratio of BB width to KC width. When BB and KC widths are the same, the ratio (BBS_Ind)is equal to one (1). When the BB width is less than the KC Width (i.e. BB fit inside KC), the BBS_Ind is less than one and a breakout is indicated. An Alert Line is provided to indicate the level at which the trader considers that the "sqeeze is on" and a breakout is eminant. Coded by Kahuna 9/10/2003 Added by eKam: 9/10/2003 The average of where price has been relative to the Donchian mid line and Exponential average of the same length is also plotted as an attempt to predict the direction of the breakout. Added 2/1/2005 For decreasing Delta bar....darker colors to highlight the change.} Inputs: {------------------------------------------------} Price(Close), Length(20), { Length for Average True Range (ATR) & Std. Deviation (SD) Calcs } nK(1.5), { Keltner Channel ATRs from Average } nBB(2), { Bollinger Band Std. Devs. from Average } AlertLine( 1 ), { BBS_Index level at which to issue alerts } NormalColor( Red ), { Normal color for BBS_Ind } AlertlColor( Blue ); { Color for BBS_Ind below alert line } Variables: {---------------------------------------------} ATR(0), { Average True Range } SDev(0), { Standard Deviation } BBS_Ind(0), { Bollinger Band Squeeze Indicator } alertTextID(-1), Denom(0), LHMult(0); if ( barnumber=1 ) then Begin If minmove <> 0 then LHMult = pricescale/minmove; end; if barnumber = 1 and alertTextID = -1 then alertTextID = Text_New(date,time,0,"dummy"); {-- Calculate BB Squeeze Indicator ----------------------} ATR = AvgTrueRange(Length); SDev = StandardDev(Price, Length, 1); Denom = (nK*ATR); If Denom <> 0 then BBS_Ind = (nBB * SDev) /Denom; If BBS_Ind < Alertline then SetPlotColor(1, NormalColor) else SetPlotColor(1, AlertlColor); {-- Plot the Index & Alert Line -------------------------} Plot1(0, "BBS_Ind"); {-- Plot delta of price from Donchian mid line ----------} value2 = LinearRegValue(price-((Highest(H, Length)+Lowest(L, Length))/2 + xAverage(c,Length))/2,Length,0); var:color(0); color = yellow; if value2 > 0 then if value2 > value2[1] then color = green else color = darkgreen; if value2 < 0 then if value2 < value2[1] then color = red else color = darkred; Plot3(value2*LHMult, "NickmNxtMove", color); {plot3(value2,"BB Squeeze",color);} {-- Issue Alert when the Squeeze is On ------------------} if BBS_Ind crosses below AlertLine and Text_GetTime(alertTextID) <> time then begin text_setLocation(alertTextID, date, time, 0); Alert("Check for Squeeze Setups on " + SymbolName); end; {-- Issue Alert when the Squeeze Releases ---------------} if BBS_Ind crosses above AlertLine and Text_GetTime(alertTextID) <> time then begin text_setLocation(alertTextID, date, time, 0); Alert("Squeeze is Over on " + SymbolName); end; if BBS_Ind crosses below AlertLine then SetPlotColor(1, Green);

now (brow and notouch) you are presenting good arguments.... should I see some charts ? thanks in advance Walter. TL is getting wild ¡¡¡ Thanks Soul for making possible this wonderfull familiy ¡¡¡

Soul noup... volume bars brow is telling have the same volume each and every bar, the fat or smaller candle are equivolume candles, wich are time based candles wich take diferent size of volume per bar to take size of candle, wich happens to be I am about to introduce a new indicator that will do a sort of equivolume thing.... but still working on it, it will show the best of this two worlds (candle/volume).... wich finally also will intergrate some vsa concepts, but easier to read.... cheers Walter.

Brow : if you use volume based charts you are not able to measure the diference on volume from bar to bar.... time based will let you see on the same period what diferent volume you got on each bar... also as ( I am ) making a paralel study of vsa on all this cant switch to volume based bars... now what I supose you are looking to (maybe) is how the volume in each bar had diferent spreads (h-l) wich could tell you what was the volume performance on price action... wich is beyond this thread an I think we want to keep it on Mr Paul candle stick /volume stuff here.... Brow I encourage you to start a thread on what you are doing, I think you got good valuable information to input, we are a growing comunity, all aproaches are very usefull indeed and we are all somehow interacting and coming to what individually fits best on its trading plan... cheers Walter.

I thought maybe we can also start taking a look to some cool motorbikes... (please no girls on them).... cheers Walter.

you can also find a very simple and clear introduction to candles here Chart Analysis - StockCharts.com

Nice Robert ¡¡ whats the lookback comparison criteria to establish up/ dn direction ? (ej, higher than previous bar, etc) ...

rickv : can post some charts of vix as you explain ? thanks Walter.

Mr Paul : can you add on the next charts you post the S&R levels you are taking into acct... (horizontal lines of pivots, mp levels, etc) that could show the entire trio... S&R, Candle and Volume... cheers Walter.