Thank you for your thoughts on this subject Steve. I hope this is not your last post as your thoughts and ideas are interesting. If I may add to this subject, agreed that there is alot of computer trading in todays market (ie BOTS), but volume is volume wheather it is generated by people like you and I hitting the the bid/ask or a computer doing so. Spread is spread and trend is trend etc. BOTS are programed by people, with their own trading thoughts, tendencies and ideas. They simply have a computer do what they themselves would do in a particular market condition or situation. Are they (BOTS) quicker than me...no doubt, but as long as i can follow their foot print, there is value in the process. My goal is to recoganize VSA signals without the progam running, ultimately making me a better trader by watching volume, spread, and price action. Again thanks to you, snowcloud, clbritton, and the others for allowing me to look in all directions to improve my trading skills.
You're welcome, Buzz. I agree with you (and with Gertrude Stein) that "...spread is spread and trend is trend...". And you're right - the BOTS are quicker than any human being. I was watching the 6e on my Infinity DOM on the unemployment numbers news this AM and wow! There's no way that any human could have moved the bid/ask around as quickly as it was moving. It was literally jumping 10 pips or more at once, first in one direction and then in the other. Glad I wasn't trying to trade that machine-made insanity. Placing a winning trade in that action would have been nothing more than sheer good luck.
In your participation in the Better Volume discussion on the ThinkScripter forum, do you remember why the participants decided to use the method of time averaging that in is now in the indicator? In my comparison of the three available types of VSA indicators in my previous post, I'm still trying to understand the intention of using the time averaging formulas that each author used. What results would be different from using just a simple moving average or an exponential moving average?
It was a nice idea to use the ROYGBIV color spectrum to display colors of the rainbow on the price bars; however, I would suggest to consider complementary colors from the color wheel to provide more contrast for clear identification of the meaning of the colors on the bars. Complementary colors stand out when they are next to each other. I wonder if we could get feedback from others reading this discussion about color identification. As for the color scheme for the symbols, that could stay as ROYGBIV.
The attached cheat sheet contains the descriptions for the symbols. I only use the word "reversal" once because I would rather that the study leave some of the interpretative work to the user. Have you read Williams? If so, you'll know which symbols might lead to a reversal. If not, you should read it.
If you download the attachment in my post, you'll see its from TradeGuider. Check me if I'm incorrect, but wasn't TradeGuider developed by Williams? I've read through his reference for the TradeGuider software "Master The Markets" and I'm not sure what the difference would be. Possibly I missed what your talking about. Do you have some quote from it that I might look for to explain you point? The TradeGuider pdf that I attached as a reference was meant to show you what I was talking about. Did you open it? Below I've copied and pasted the section on reversals.
Here are the chapters from Master The Markets regarding reversals.
Let me know if you think these reversals can be programmed into the VPA indicator. I think this would help other users.
Last edited by StockJock; October 8th, 2010 at 11:16 PM.
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Yes, I looked at your attachment and have seen it before. And yes, TG was developed by Williams but I'm sure others are involved with its current development. If you've studied MTM you should have enough info to put 2 and 2 together and interpret upThrusts, Stopping Volume, and the various Strength and Weakness signals into your own opinion on whether a reversal is likely or not. This study is a study, it's not meant to be a trading signal generator or BOT-like system. In fact Karthik, the study's original author, wrote that he never intended the study to be a replacement for TG.
I am very interested in hearing specifically about what works and what doesn't work in the study as it is so that I can tweak the code to improve it. I definitely don't have time to add a multitude of bells and whistles or to do a major re-write. If you do, by all means, go for it.