Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
Thanks again for the experiment. I am currently using your better volume indicator (min) in my daily trading as a confirmation indicator. I wanted to compare the output of better Vol X vs better Vol on a 12R and 5 min chart of CL. IMO and according to what my eyes are telling me, on the chart with the better Vol X there are too many signals (even more if I use a 6R). I am interested in change or end of trends therefore I kept the bars that are giving me these kind of signals (the rest is set to transparent, makes easier to locate things):
Breakout or Climax deep sky blue Churn Yelllow
Climax churn Magenta
Low volume White
As you can see from the picture below, in the first chart CL R12 with Better Vol X it is much more difficult to take a decision, whereas in the 5 min chart Better Vol I can clearly identify 3 areas where I have a confirmation.
For my style of trading I consider the Better Volume used with minute charts much more spotty and reliable.
I absolutely agree with you. The basic problem here is that the range chart does not catch the acceleration that takes place during a climax. The 5-minute chart displays one wide ranging bar, whereas the range charts divides this bar into a lot of standard range bars.
I tried to compensate this by displaying volume traded per time unit and use momentum instead of the range. What I cannot change is the dispersion of the high volume event over several bars, which the range chart will always display instead of the one climax bar on the 5 minute chart.
Maybe there is a way of using an adaptive moving average with a variable period depending on the time stamps of the range bars. Adding a time filter, such as 5 min could eventually solve the problem. Or shall I give up after the first trial?
It was not my intention to hijack the experiment, I just feel satisfied with the better volume on a 5 min chart although I use Range charts for my PA,TL and Fib setups. As Dr Gary mentioned in his webinar too much information doesn't necessary lead to a better trading.
and yet another interesting project. once more hut ab.
I tried to overcome my fear and did a little testing.
with my very limited knowledge, I believe both indicators plot the same thing on a time based chart. attached a 5 min chart. on the better renko chart, I actually had more signals with the original better volume. but not really a big difference.
either way, I believe it's still valuable information you get. panel 3 original indicator and panel 2 is the new one.
You are right Better Renko seems to show less signals vs Range but yet it's not simply a question of quantity but quality signals related to the chart view and timing. I guess my eyes and mind are used to the traditional better volume.
But honestly, in the sub-minute region the signals are not reliable. Everything that goes below 3 minutes is questionable. What I will try to do, is to produce an indicator version, which takes the signals from a 3 minute or 5 minute rolling timeframe and displays them on the chart.
The rolling element, however, may produce mountain like formations of three bars as it shifts through time.