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.

 

Code

{*********************** Big Mike Trading https://nexusfi.com May 2011 ***********************} inputs:     avglength ( 20 );      vars:     upvol ( 0 ),     upvolavg ( 0 ),     dnvol ( 0 ),     dnvolavg ( 0 ),     typical ( 0 );      typical = (H+L) / 2; if C > typical then upvol = V else upvol = 0; if C < typical then dnvol = V else dnvol = 0; upvolavg = XAverage(upvol, avglength);  dnvolavg = XAverage(dnvol, avglength); Plot1(upvolavg); Plot2(dnvolavg); Plot3(upvolavg); Plot4(dnvolavg);

Mike

Mike,

This is almost identical to the "On Balance Volume" indy on TS. Yours actually includes the upvol plot line and the downvol plot line, where the OBV only plots the difference.

Yours is a little more aggressive (even with both set at 20) and a little more leading (I like it)

It's also very similar to the "Chaikin Oscillator" which relates price action to volume in reference to accumulation or distribution. But again, plotting the overlaid, your version is a little more agressive/leading which gives better signals for entry or exit.

You're giving out tons of free chicken

RM99 

You're giving out tons of free chicken

Thanks for the feedback

Who's hungry?



Mike