I couldn't find an indicator that accomplished what I wanted, so I just made one. The indicator simply plots the Up volume and Down volume separately, as an average.
Simple concept - price closes above the typical (H+L)/2 then it's marked as up volume, and vice versa for down volume.
- If the up volume band is higher than the down volume band, then market is probably moving up.
- If both bands are declining, there is not much interest at these prices.
- If bands are moving towards each other, trend reversal.
- If bands are moving away from each other, trend continuation.
Anyway, don't read too much into it.
Here is the code, some screen shots, and a MultiCharts pla.
This is the easy language version of the volume breakdown indicator.
I just copied it into Multicharts.
I changed the period length to 8. You can play around with the period setting to maybe get better results.
Using Multicharts, the indicator seems to work best on renko charts.
I have drawn some divergences on the chart.
March 9th, 2011
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krutchy
Indicator paints when confirming both CCIs above or below zero. Can use one CCI for trend and other for entries and exits similar to Jeff's CCI - but longer frame CCI for trend instead of MAs. CCI lengths are adjustable inputs. Need to change color of your instrument bar to the neutral color (yellow in my case). Noob with EL so take it easy on me.