I am continuing to watch the upThrust bars and their confirmation bars. I am still uncomfortable with the fact that many of them don't look like the Gravestone Dojis they're supposed to resemble. I've noticed, however, that in almost all cases if I mentally combine an identified upThrust that doesn't look like a Gravestone with 2 to 5 previous bars, a Gravestone Doji would have appeared on a larger time scale. In order to identify true Gravestones I've added the following code identified by a white square:
This does indeed find real Gravestones, as few and far between as they might be.
A couple color considerations:
I don't like the fact that there are 3 different conditions identified by a blue square at the top. I have started modifying the colors displayed in order to differentiate these conditions in a way that makes sense. My first change is that pseudoUpthrusts and their confirmation are now identified by an Orange square and triangle instead of blue. This makes it much easier to recognize them when they occur especially because I also changed the color behind their text description to Orange. So far, so good.
I noticed that (152,251,152) is used for a couple of the trend colors. I looked at a web-safe color chart and don't find those numbers there. This is probably not a big deal, but I think the colors should be (153,255,153). 153 is equal to Hex 99 which is a common value in web-safe colors. Btw, I've used (255,102,102) for my Orange.
On another topic I found a possible bug in the code for noSupplyBar. The code for noDemandBar fits pretty well with the description of No Demand and of a No Demand Up-Bar in the glossary of Williams' first book Master the Markets. The study defines it as an Up bar with narrow spread closing down on volume that has been decreasing over a 2 bar period. Williams' book doesn't define it quite as explicitly but the study's code seems to be a good fit.
However, in the code for noSupplyBar I think that the last term should be isUpCloseBar not isDownCloseBar. No Supply implies lack of selling pressure which would be more evident if the bar closes up not down.
Maybe open = low is too stringent? Where does Williams mention that the up thrust bar must be a gravestone doji?
The colors were a bit odd in the NT version and I tried to match them as closely as possible. I agree that there are too many similar conditions for the same color, but I did not want to impose those changes since the port was supposed to be as close as possible.
“Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat.” - Sun Tzu
Williams doesn't specifically say that an upThrust needs to be a Gravestone Doji, but he does say on p. 111 that it does "...close on the low" which is a characteristic of Gravestones. I agree that open == low is probably too stringent but I wanted to see how this change would manifest in daily use and how it might interact with the upThrust code already in place. Specifically, I want to see if any of the Gravestone Dojis it finds qualify as upThrusts. I put the white square way up above the bar so there will be room for other indicators that might appear above the bar and below the GD white square. Ultimately, it'll probably be best to simply test that the candle's real body is some fraction of the upper wick and that the lower wick is really small if there at all.
I agree that the colors in the NT version are a bit odd, actually more than a bit in my opinion. Little by little, I plan to make changes so that there is an intuitive relationship between the colors and the significance of each VSA label. So far I am really digging my orange pseudo-upThrusts. In one case today a series of them led up to a red upThrust square and triangle confirmation and the EUR/USD price did indeed decline thereafter.
Last edited by snowcloud; August 17th, 2010 at 08:42 PM.
I am noticing that when taken in combination with its previous bar a PseudoUpThrustBar can come closer to satisfying Williams' UpThrust criteria than many of the reported UpThrustBars do. Case in point on the EUR/USD at 11:50 AM ET today on two 2min candles. The first: O 2876 H 2882 L 2876 C 2880; The second: O 2880 H 2881 L 2876 C 2876 [add "1." prefix to all values]. The first candle had no identification, the second was identified as a PseudoUpThrust. Together they make a perfect Gravestone Doji of O 2876 H 2882 L 2876 C 2876. The next candle was a PseudoUpThrustConfirmation and the price did decline from there to a low of 2862 six 2min bars later.
I think that the reason for this phenomenon is that the criteria for a PseudoUpThrust requires that the previous bar has to be Up on above average volume which is how many traditional upThrusts in the Williams sense start out. Traditionally they then drop back to the lows of the bar which in this case happens in the next bar identified as a PseudoUpThrust. The code for PseudoUpThrustBars filters out UpThrustBars as defined in the study as well as wideSpreadBars (which is redundant because the criteria for an upThrustBar requires that bar to be a WideSpreadBar therefore !isUpThrustBar filters wideSpreadBars out).
I'll keep watching for confirmation of my hypothesis. (Btw I was away from my computer when these 2 bars occurred so I didn't take this nice little trade. Wish I had)!
I just thought I'd let you guys know that someone has translated the Better Volume Indicator which is also a VSA type indicator. See attachments. Would anyone be willing to try to translate one of the Point And Figure indicators that I have attached? Perticularly the XO.txt? They are in MetaTrader 4 language.
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