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How to use volume in your trading
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How to use volume in your trading

  #301 (permalink)
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I think this is a pretty cool idea and would love to see what this looks like on slower charts. IMO, the tick chart posted has too many signals in too short a timeframe to allow you to analyze and filter out the signals. Have you tried this on the 5min or maybe a 7 or 10SbsRenko?

Is there any way to allow the user to choose the symbols/plots for each type of signal?

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  #302 (permalink)
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Sure, I have the faster chart there in order to show lots of examples, also I squashed it together for the picture.

Once the code is out there you will be able to go in and change anything you want quite easily, but each symbol won't be in the menu panel because that would just be too much in the panel I think. Also might be a bit tricky to set up with the wingding option, never tried that.

Also, I used text on Cory's and the StopV ones to distinguish between them in a way one can remember. This is more for research for a while to study and get a feel for them. Later on could be smaller, more abstract symbols or just different color triangles.

Update: I went in and changed the text to something smaller, made my clouds curvy with a 2period MA, and put it up on 5 min chart. Yes, too many little signals etc. but this is not designed so much for trading as ways to study different types of volume and price action, so the different colors and sigs etc. make it easier to keep track of what is what. Once you know them, don't really need the symbols. For example the white dots are narrow range bars. The white bars are inside bars. Don't need colors etc. for that but helps when studying. I think half the pink mini-diamonds which are based around low vol bars can go but I want to study them a bit longer or try other ideas.

One thing I have noticed since having (most of) these for a week or so now: the green bars become significant, the ones that aren't getting any special attention from BetterVolume. Often when you see a cluster of greens for a while with little else, it's time to get ready. Something will happen soon.

I also put together a Donchian ratio with preliminary stats that shows when the current swing is exceeding the average swing range. As soon as that starts to turn down, it is often a pullback about to start. The main point of the indicator, though, is to keep running stats on the average Donchian MaxHigh-MaxLow range, so if/when you take signal at start of swing, you can quickly see the average tick nr expectancy assuming it makes it up (when long) to current max high. Also, because it is now at the high of the Donchian High Range (for some reason it's reading the penultimate bar, not the actual last bar), it is projecting a high on this swing of 1205 based on the average. That average is skewed, I think because of the large upspike due to missing data, but the principle is there anyway. Fun. But this is not a volume indicator so not relevant to this thread.

Attached Thumbnails
How to use volume in your trading-bm-1126-bvv5min.png  

Last edited by cclsys; November 26th, 2009 at 04:05 AM.
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  #303 (permalink)
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cclsys View Post
OK. I have put together BetterVolume2, Cory's Volstops, SpikeVols, plus in BV2 some progression patterns like down bar, climax or churn, then up bar, and a few others. Some seem helpful, others not. The BV2 sigs are in little wingdings. The Volume Spikes say 'V', and Cory's have either a triangle for Type1, "XX" for Type 2, or "D" for Type 3 divergence, just so they are all clearly different and can be examined both separately and together and you know which is which. I hope some find this helpful. I think many of these Volume Patterns are quite helpful. I wonder if the BVV (as I call it) shouldn't be in the VIP section so I am not pasting it in. Let me know what you think, both about the combination and where to post code.

Meanwhile 2 pictures: Tick and RenkoSbS.

working on something similar. trying to put together volstop, volspike and some from vpa. like the "new confirmed upthrust bar and strength confirmation bar" in this indicator.

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Register to download File Type: zip VPA.zip (23.4 KB, 111 views)
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  #304 (permalink)
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Silvester17 View Post
working on something similar. trying to put together volstop, volspike and some from vpa. like the "new confirmed upthrust bar and strength confirmation bar" in this indicator.

so far it doesn't look that bad.

in panel 3: background is rpm, colored bars are volstop and vpa

in panel 1: triangles and diamonds are vpa

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How to use volume in your trading-es-12-09-11_30_2009-5-min-.jpg  
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  #305 (permalink)
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sorry, lost track: what is vpa?

That all looks very good. I am finding that volume patterns tend to be faster and more reliable than bar-only patterns. Granted many of Cory's involve close/high/low comparison, but still, they often trigger on the high/low bar which most bar-based patterns simply cannot do.

That said, many of the vol signals - esp. the triangles - look better than they are since they are plotted off the high/lows, not entry. I tried plotting them at low/high breakouts but they just cluttered things up and put them back. Does give a more realistic perspective in terms of comparing with bar pattern type swing high/low determinants. (what a phrase!)

Charting niggles: am a little confused you chose your up and down colors for the Dvalue plots - why not choose something different from the up/down colors? (I have a thing about colors!) Also, your background is a pale blue which is bullish color. This will influence your overall take on bullish versus bearish situations. Suggest a neutral background like Ivory or combination of blue/red = purple/orchid (pale).

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  #306 (permalink)
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cclsys View Post
sorry, lost track: what is vpa?

That all looks very good. I am finding that volume patterns tend to be faster and more reliable than bar-only patterns. Granted many of Cory's involve close/high/low comparison, but still, they often trigger on the high/low bar which most bar-based patterns simply cannot do.

That said, many of the vol signals - esp. the triangles - look better than they are since they are plotted off the high/lows, not entry. I tried plotting them at low/high breakouts but they just cluttered things up and put them back. Does give a more realistic perspective in terms of comparing with bar pattern type swing high/low determinants. (what a phrase!)

Charting niggles: am a little confused you chose your up and down colors for the Dvalue plots - why not choose something different from the up/down colors? (I have a thing about colors!) Also, your background is a pale blue which is bullish color. This will influence your overall take on bullish versus bearish situations. Suggest a neutral background like Ivory or combination of blue/red = purple/orchid (pale).

vpa = volume-price-analysis

VPA-Volume Price Analysis (Price,Volume, Spread)

have to warn you, this is a monster of an indicator. I only took what I needed from that code. have to say I totally mutilated that indicator.

about triangles:

Triangle Up - An Upbar closing near High after a Test confirms strength.
Triangle Down - High volume Downbar after an upmove on high volume indicates weakness.



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  #307 (permalink)
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re: Charting niggles: am a little confused you chose your up and down colors for the Dvalue plots - why not choose something different from the up/down colors? (I have a thing about colors!) Also, your background is a pale blue which is bullish color. This will influence your overall take on bullish versus bearish situations. Suggest a neutral background like Ivory or combination of blue/red = purple/orchid (pale).

very good observation. but for me there're only 2 ways, either up or down. with other words blue or red (few exceptions on a couple of indicators). it won't influence my overall take, but it will remind me of my longer term bias. I might change it to a redish color later next year after reaching maybe 1400 -1500 in s & p.

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  #308 (permalink)
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Silvester17 View Post
re: Charting niggles: am a little confused you chose your up and down colors for the Dvalue plots - why not choose something different from the up/down colors? (I have a thing about colors!) Also, your background is a pale blue which is bullish color. This will influence your overall take on bullish versus bearish situations. Suggest a neutral background like Ivory or combination of blue/red = purple/orchid (pale).

very good observation. but for me there're only 2 ways, either up or down. with other words blue or red (few exceptions on a couple of indicators). it won't influence my overall take, but it will remind me of my longer term bias. I might change it to a redish color later next year after reaching maybe 1400 -1500 in s & p.

Aha! So the choice of blue background is deliberate! That's something else from what I thought and makes great sense. Power of the subconscious consciously empowered!

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  #309 (permalink)
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cclsys View Post
sorry, lost track: what is vpa?

Have added VPA to the list of acronyms that are auto-expanded and underlined on the forum. I had VSA in there previously but forgot VPA

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  #310 (permalink)
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I've been pretty quiet here, mainly because I've been focused on trading CL with a naked range chart. I'm not using the volume patterns but now that I'm somewhat consistent with just price I should try adding it to see if it helps.

In the meantime, I have found this thread to be very interesting. I've currently got it on a chart just observing to see if I can see any patterns. It's not easy at all, I imagine it could take months to master, but this is in the direction I'd like to go.

https://futures.io/elite-circle/1342-volume-ladder-ninjatrader.html

The free indicator in the thread is worth the donation to become a supporting member if you haven't already done so.

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