Hello rayl54292,
This is my first post on this forum.
I was interested in the chart in your last post [3] and your comment about “input and brutal honestyâ€Â
This is my analysis of VSA in terms of looking at Volume and Standard Deviation levels.
The use of the Normal Standard Distribution curve can result in Negative Value Levels ( ie. for the Lower Standard Deviation levels ).
Volume can only be a Positive Value, hence I use a LOG Normal Distribution of Volume to assess the Standard Deviation levels. This gives levels which are always Positive. The following Amibroker Code shows what I am referring to.
I believe TG uses this approach also. Is this what you do also ?
All feedback on this line of thinking is most welcome.
Regards,
V
LBP = Param("Look Back", 30, 0, 100,1 );
Mean = MA(ln(V),LBP);
StD = StDev(ln(V),LBP);
xp3 = exp(mean + 3*std);
xp2 = exp(mean + 2*std);
xp1 = exp(mean + 1*std);
xm = exp(mean);
xn1 = exp(mean - 1*std);
xn2 = exp(mean - 2*std);
Plot(xp3,"", 1,1|4096);
Plot(xp2,"", 1,1|4096);
Plot(xp1,"", 1,1|4096);
Plot(xm, "", 29,1|4096);
Plot(xn1,"", 1,1|4096);
Plot(xn2,"", 1,1|4096);
Clr = IIf(V>Ref(V,-1),29,32);
Plot(V,"",Clr,6);