Retest on Lower Volume with Volume Gradient

[walterw 10]

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.

[Tams 20]

you can add gradient to volume weighed color bars !

 

http://www.traderslaboratory.com/forums/f46/volume-weighed-color-bars-5709.html

 

[Rusty99 10]

I would have thought that the changes in volume are already displayed in the volume chart. I have been looking at ways to integrate the rate of change of volume with the position of the close on the bar and the range size itself (spread). My 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. Given its combining three elements the signals are going to be mixed and require scrutiny.

 

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

 

[diablo272 10]

Interesting. I have had ideas similar to these for use with volume bars, but I don't have the skills to implement them. Thanks for sharing guys.