New Integrated VSA Style Indicator

[Rusty99 10]

I have been developing an integrated indicator based on VSA (Volume Spread Analysis) concepts.

The indicator combines three parameters

 

Position of the close on the bar as a percentage of the range

Rate of change of volume (%)

Rate of change the range (high-low)(%)

 

{These are separate indicators that are added for VSAtot)

 

The parameters are equally scaled and added, thus far.

 

This indicator is aimed at develping a screener tool to pick stocks for closer scrutiny. (see VSAtot in the chart). It would be used with other indicators and combined with other signals for the screener (price trend).

 

Given its combining three elements the signals are going to be mixed and require scrutiny. The idea is to find find stocks for closer examination. Currently the screener simply looks for an upswing in VSAtot in the last 3 days and a price surge.

 

I would be interested in any similar ideas for this approach.

 

Cheers,

 

[deb99891 10]

wers the back test report

 

:question:

[BlowFish 10]

How and why would he provide a back test report? It is simply an indicator to aid with screening. "This indicator is aimed at develping a screener tool to pick stocks for closer scrutiny."

 

Of course if you think there is some value in back testing go right ahead.

[Rusty99 10]

Thanks for the responses. Develping and testing a system was down the track at little.

BUT I have produced a backtest formula based on VSAtot, which has potential as a trading system as there are good buy and sell signals.

 

The system needs further development and tweaking but below are the results.

As I said this is very preliminary and needs further work, but it shows potential.

 

 

and another

 

[BlowFish 10]

You might want to take a look at 'better volume indicator' at emini-watch. Pretty similar in concept and quite elegantly simple,

[Rusty99 10]

You might want to take a look at 'better volume indicator' at emini-watch. Pretty similar in concept and quite elegantly simple,

 

Thanks for that - I had a look at this and I agree that it uses similar ideas, but the focus is on the bar display rather than an indicator that can be used to screen stocks.

 

See the thread " Retest on Lower Volume with Volume Gradient " for similar ideas.

 

Following comments elsewhere there is a need to break the link with VSA.

 

I have renamed the indicator - Volume Position Range Signal (VPRS)

 

It measures relative changes in the Volume, Position of the Close on the bar, and the Relative True Range and generates a Signal that can be used to screen stock for closer scrutiny.

 

Having the 'better volume indicator' for displaying the stocks found would be a good enhancement, as would VSA.

 

Cheers and Thanks for the Feedback,

[marcj 10]

Good work Rusty99

 

I have gone down the custom VSA path too. I found that the 10 minute frame has special properties; it shows more VSA response. I’d guess your indicator would do the same.

 

marcj