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
- 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?
- I fail to see discernible pattern on the waves. I am still experimenting.
- 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 …..