REQ Help with Trend Indicator

[jjthetrader 10]

Any reading equal to the upper band = Very High Volume.

Any reading above the upper band = Ultra High Volume

Any reading between the middle band (average) and upper band = High Volume

Any reading around the middle band = Average Volume

Any reading in the area below the average band and the lowest band = Low Volume

Any reading below the bottom band = Very Low Volume

 

Logic behind it:

 

Average range is just a 15 bar EMA.

Very High Band is 1.75 times the 15 EMA.

Very low range is 0.25 times the 15 EMA.

 

It's that simple. Marketing makes it sound complicated. But if all you're doing is measuring relative volume it makes perfect sense.

 

To do the colours in metastock you're on your own:)

RELATIVEVOLUME.ELD

[BlowFish 10]

I didn't see that this thread had been posted to either! I replied in the VSA thread.

[jjthetrader 10]

I didn't see that this thread had been posted to either! I replied in the VSA thread.

 

That's how much the smart money doesn't want you to know these things, they're intercepting your emails. :o

[BlowFish 10]

Well don JJ cracking it (and of course Blu for the code). I am rather surprised that they use a fixed multiplier. Years ago (just after VSA became tradeguider from memory). I talked to them about this and suggested they added bands. In those days it had a simple MA and that was it. They obviously took that on board but did not the bit I suggested about using standard deviations! To me it just 'makes sense' as it actually uses statistics so you know high and ultra high are statistically just that. Its probably of no mater (you don't see any lines on Sebastians charts hehe) Of course it is the principles that are important but I have a hunch we might actually be able to 'improve' on TG. Anyway don't want to detract from the great contribution so once again ....:applaud:

 

:beer:

[jjthetrader 10]

The bands appear to be fixed. There may be a more complex calculation for it but using trial and error they match. Plus you don't really give a whole lot of weight to the bands anyway, they're just a quick visual que as to what volume is doing relatively. Once volume goes into high territory you start watching the spread and close a whole lot closer and vice versa.

 

So std dev would be a nice visual cue as well. I would encourage a banding system like this as well and would love to see it.

[mister ed 10]

That's how much the smart money doesn't want you to know these things, they're intercepting your emails. :o

 

OMG!!!! You're right - :rofl: I didn't see it either! Thanks for the logic jj, very east to put this into Metastock.