Friday, June 28, 2013

Volume Wave

Of late I have not been able to find much time for the experiments. My latest interest has been on the Weis Volume waves. Maybe it is a commercial not much material is available. I tried Davis weis’s book “Trades about to Happen”. Frankly not very impressed with the book.  In the chapter on tape reading he does talk about the volume waves.  Somehow the explanation is very much lacking. Either he is not good teacher or he prefers not to explain as he is selling the stuff. Frankly I have not been able to find much use for the volume wave and the reasons are as follows

  1. The waves is based on based on percentage or pips which he calls as waves size or reversal and it is in terms of pips. If the reversal percentage is changed then it could present a different picture. What is the ideal wave size? The wave size could change from instrument to instrument. How do you arrive at the ideal wave size?
  2.      I fail to see discernible pattern on the waves. I am still experimenting.
  3.      I do not know how the commercial program works but I feel that the concept calls for use of the zig-zag like functions to work out the waves.  The zig-zag function obviously looks to the future and this could lend the effort unreliable.

I have implemented the Volume wave in Amibroker. Please share your ideas about the Volume waves as I continue to experiment with it.

Sharing the AFL to you to experiment …..


  1. Thanks Renu...DO share your finding on the Volume Wave

  2. Dear Karthik Sir hats off to your efforts for transforming this and making it an indicator,I do believe this there is problem with the settings as it changes its shape with the change in settings.

    I'm new to AMI do this indicator or AFL( I mean no Disrespect for your efforts and time) any how repaints or redraws its histrogram bars.

    What is the chnage % means its the change in time or price or what? sorry for my silly question as I'm new to AMI.

    you talked about zigzag is the zigzag to be attached with this indicator? cause i haven't seen any setting in your volume AFL or like volume AFL there is another Zigzag AFL to go with this Indicator or AFL?

    Thanks once again for guiding and helping budding traders.

  3. Dear KARTHIK Sir I've been observing the wies wave concept from a longer time from my experience it is a good concept if applied properly, nothing else is required.

    As far as my observation with your AFL SORRY TO SAY BUT it repaints by that I mean if the red bars are formed and prices crosses certain up level suddenly the red bars converts into green bars( correct me if I'm wrong with the observation) this thing I observed in crudeoil chart, or else it has happened due to the settings please comment.

    Please contact me through for detail understanding of the concept so that you can update the existing Volume Wave AFL cause according to his studies he made fortune out of market based on this simple indicator.
    Thank you for your efforts and time.

  4. thank u for ur selfless work sir....
    it really takes big heart to share wht u find.
    u r doing it.....
    i been watching this blog since last 2 months and i left speechless tht how could someone can take lot of hard work and share it freely for good of others.

    thank u sir once again. god bless u with all his grace....

  5. Hi Syed

    You are right about repainting. I has also warned about this in my blog. It repaints because the afl uses the zig function which looks to the future. Quoting from my Blog " The zig-zag function obviously looks to the future and this could lend the effort unreliable."

  6. Hi Extremist

    Not a good name considering the current circumstances :).
    Thanks for your kind words.



  7. can we code this for amibroker?

  8. Karthik
    I saw your Youtube video for the Buying and Selling Pressure indicator today as I am interested in VSA thinking I followed here to your Blog to see your coding, and by conincidence your comments on David Weiss’s Weiss Wave.
    Reviewing your coding I notice a similarity to an approach by Larry Williams (not Tom Williams) identifying "Smart Money" that I previously adapted for analysing smart money amd Weiss’s Weiss wave volume within an overall VSA context. This approach may be useful to adapting the Weiss Waves into a Smart Money or “Buying and Selling pressure” in your terms approach to analysing wave volume.
    The link below is to a Bullcharts Forum discussion showing my take on Smart Money wave volume:
    Hope it is of some interest.

  9. Hi Charles,

    Thanks, Went through your posts in the bull chart forum. You have done some really interesting work, stuff that is worth putting in one library. I was trying to find your mail ID so that I can share more thongs on VSA and smart money.



    1. Karthik

      I had trouble setting up an ID to post the above message to you so not sure I did the process properly.

      My direct email is



  10. Hello Karthik,


    Appreciate your hard work and dedication.

    Please try and solve the issue of repainting.

    Thanks once again.


  11. I tried to apply your afl in AB? But its not seems same as in picture?

    I didnt get buy & sell signal...
    can you help me?

    Thanks in advance.

  12. Hi This is an Indicator not a trading system and hence no buy and sell signals.

  13. hi sir - can u make an afl for cumulative delta volume analysis?
    do u follow that concept?

  14. marar sir..can we have the price chart afl with trend meter on right side,which shown in the abv chart

  15. Thanks a million for this brilliant indicator. Is it possible to add a setting like the 'number of points' instead of the '%change' to the zig-zag indicator? I know David Weis uses the setting of 0.75 points on the mini S&P (ES) on smaller intraday timeframes.

  16. Sir,

    I could not download from 4shared since file not found error is coming.

    Kindly post in site itself or mail to

  17. Very nice indicator, thank you to share it! I would try it, but I work in Excel so I need a formula to create the indicator, do you have it? If you want to send me a mail, here is my address: