Multipart Series on Volume Spread analysis

 

Started a Multipart Series on Volume Spread Analysis  on my You Tube Channel. Ideal for beginners,

Releasing VPA 5.0

Finally after a long Gap we have the updated version of the Volume Price Analysis afl VPA.5.0. 

 Some code issues have been corrected in this version. In addiiton the following features have been added

- Facility to plot candle sticks  - Various Bar colouring option 

- Unique strength Band 

- Facility to plot trend Bands 

- Facility to plot various EMAs 

- A dashboard for Buying and Selling pressure, Effort and Result etc

- Additional helpful signals like two bar reversal 

- Facility to draw Volume at Price 

- Facility to draw VWAP line 

 You can watch the Introdcutory Video on my Youtube channel 

 The afl can be downloaded from the Below link

DOWNLOAD VPA 5.0

VPA Version 4

Finally here is the next version of the VPA, V.4.0.  The earlier version was a step in refining the signal generation codes. However the signals were generated were too many creating a confusing picture. Also there was a error in coding which prevented the use Random walk  Index for the evaluation of the trend. In version 4.0 I have attempted to refine the signal generation coding  so we have lesser more accurate signals.

Another major change is the effort to indicate the high probability of change in the Trend. These are Sentiment Change Indicators. .  A green up Arrow indicates that there is a change of sentiment. The current down Trend may possibly end soon and we may see an Uptrend soon. A Red Down Arrow indicates that there is a change of sentiment. The current Up Trend may possibly end soon and we may see Down trend soon.  Like any signal in Technical Analysis there signal are never 100% accurate these seem to catch the majority of the trend changes. The users are advised not to use these as buy and sell signals. However these signals would be indeed good guiding sophomores.

I am also including a PDF file which provides some details of the various Flags generated by the AFL on the chart. This would help the beginner very much to understand the implication of the various Flags. This is very brief and we I will try to elaborate on each as and when time permits.

The AL can be downloaded from here :
VPA  Version 4
VPA Flags

VPA - 3 with Exploration

There has been a lot of demand for including the Exploration with the Latest VPA afl.  I never imagined that so many people used the exploration. It is only a sign of the growing popularity of  the Wyckoff way to Analysis the Markets.

Today is special day to Indians. The 15th of August is the Independence Day. And there cannot be better Day to share the AFL with Exploration. So from a Proud Indian, a gift to all VPA lovers around the globe.

Since many were having problem downloading from 4shared site, I am sharing it from my One Drive Please provide feedback so that we can improve it further.

VPA - V.3.1.0 - VPA with Exploration

Finally...... Here is VPA Version 3

Finally, I am ready with the working version of the upgraded VPA, version 3.0. Of course the usual prolonged testing has not been done yet. For the version 1.0 I had my friend CAS who did the through testing before we released for the public. He was the one who introduced me to VSA. It is the right time to acknowledge his contribution to the VPA. Anyways I am releasing the version 3.0 directly now and we can collect all the feedback and make the debugging if any.

Obviously the first question that would arise in everyone’s mind is what is new in version 3.0. Let us look at the various changes as below

Code: The code itself had undergone a big change. Now it is more organized and easily understandable. Also the formula for each condition have been studied and updated.

Background color choice: There is option to select the background color.  There is option to have two different colors for the upper and lower parts of the pane providing a gradient colors.

Trend Analysis: One of the major changes is the way the trend evaluation is done. In the earlier version trend evaluation was done using Linear Regression Slope. In the new version we are using the “Random Walk Index” to evaluate the Trend. This method is much more accurate compared to the earlier one. It uses the Inbuilt RWI functions of the Amibroker. The AFL has some parameter variables and if one is not sure about the Random Walk Index it is better to leave the parameters at default values. The RWI index and trend analysis deserves a separate dedicated post which I will do later.

Bar coloring: Two choices for bar coloring are provided, VSA based and Trend Based. The method is selectable from the parameter window.

Support and Resistance lines:  The support and resistance lines can be plotted on the chart. Maximum of 20 lines can be plotted. One can also adjust the sensitivity for the selecting the support and resistance lines. All the selection can be performed from the parameter window.

 Also commentary is provided about the support and resistance lines. Messages are displayed as the price approaches a support or resistance lines. Also messages are displayed when the price cross a support or resistance line.

 High Volume Lines:  In Volume price analysis high Volume bars deserve a lot of attention. The high volume Bars of the past  also play significant role in current Bar analysis as well. So I have provided the facility to plot the high volume lines just  like the support and resistance lines.  One can plot up to 20 lines. Also one can adjust the volume factor that determines the high volume areas.  All the adjustments and selection are done from the Parameter window.

The Parameter setting window

The AFL can be downloaded from the below link

Volume Price Analysis VPA 3.0

BSP Indicator Ported to Ninja trader

Took a long break from Trading , TA ..et all .. Recently someone introduced me to the Ninjatrader Platform.  It is quite interesting one. But for someone like me who likes to develop own concepts and indicators the Ninjatrader would present a big problem, that is programming. The programming in Amibroker  is really simple compared to Ninjatrader. The programming is down in C#  which is quite a daunting task for a IT dummy like me. However I have a bad habit of not giving up easily. So I took up the challenge. Unfortunately there is no proper tutorial available across the net. For anyone without the knowledge of C# or .NET  the task of learning ninjatrader programming can be really difficult. I have been trying to port my Buying and Selling pressure Indicator to Ninjatrader 7.  Finally after days of struggle the codes complied without error and the indicator showed up under the chart. Of course my code is definitely not the most efficient one bt still it does the job. Hopefully my skills will improve slowly and we will have all my work ported  NinjaTrader platform...  :)

Ninjatrader users can download the file form here....

K-Bars Variations in charting Bars...

Also under consideration is a dream is a project to help and educate retail investors so that they do not easily lose their hard earned money in the market. The idea is to equip the small trader with the technical tools and education to save them from the sharks of the stock market and the snake oil vendors. The project has been given a pet name “Marar Foundation”.  Well, the seeds have been sown and we will wait for project to sprout and grow in to healthy and successful organization. I will be sharing more information on the same as the time goes.

Today I will be sharing some of the charting tricks I use. As a VSA enthusiast I more interested in how much easily the Smart Money would move the stocks or in other words what is the effort and the corresponding result. So I am more interested in the where the current stock price ended compared to the last bar close. In a EOD perspective how is today’s close compared to yesterday’s close. So I have special bars which have the current open adjusted to previous bars close. As a result we have a smoother chart without the Gap ups and Gap downs. I call it the K-Bars charts

The other chart I use is more interesting and the one with bars that reflect the buying and selling pressure. This chart helps us the easily understand the underlying market sentiment 

in terms of supply and demand. Let us look at it with an example.

In the Above chart the bars are coloured red and green. The green part represents the buying pressure / demand and the red part represent the selling pressure / supply. In the up move and down move the demand and supply is clearly indicated by the corresponding colour  However the utility of these bars are can be appreciated during the turning points. Look at the green box. After the down trend the demand /buying coming is very visible by dominating green colour  So the impending up move was very evident. In the same way in the red box the selling/supply was dominant and was clearly visible and the down is easily forecast.

I am sharing the code piece for Amibroker for those interested to experiment. You can upend the same to any other strategy code. The same can be down loaded here. Download the AFL code.

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 …..

The Volume Wave AFL...

Effort Index AFL

Finally here it is ... the Effort Index AFL...

The afl provides many options which are selectable from the Parameter window.
First option is to plot either the Raw Effort Index or the the Effort Index.

The Raw effort index provides the effort and the result in the same chart. The Result is plotted above the zero line and the Effort is plotted below the zero line. This makes comparison of the Effort and the corresponding Result on a Bar by Bar basis.

The Effort index is the ratio of the Result to Effort which in effort the Result per unit effort..

Also there is an Option for calculating the effort index either the Bar to Bar  or the Spread..

Bar To Bar  Calculation

Spread Calculation

Download the AFL...

Video On "Effort Index"

My latest video on the latest Indicator "Effort Index"

Afl will be available soon.

VSA - Identifying weakness with Effort and Result..

I am writing something about VSA after a long time.  The last time I posted the buying and selling pressure indicator which is a good add on indicator for VSA. Now I am going to talk about indentifying hidden weakness in the bars.  Many times we see up bars closing near the top with good volumes.  Most would naturally assume there is strength in those bars as it is an up bar, closing in the top and has good volume, all traits of strength. However there could be hidden weakness in these bars. Obviously the question is why and how we identify these.

Let us take the nifty chart as example. In the chart I have plotted the chart in one pane, the volume in another. The third pane consists of a new indicator which I call as the Effort index.  This chart plots the effort (in effect volume) as bars below the middle line. The result is plotted above the middle line as bars.  Now let is look at the charts and focus on the three bars marked 1, 2 and 3.  In the Bar marked 1 we can see a wide spread “Effort to Move up Bar” with good volume. In the pane three we can see that the effort was high and the result was also equally high. In other words the effort produced the required result. Now look at the bars marked 2 and 3. These are up bars closing near the top and volume was high almost equal to the previous day’s volume. So it is natural to consider that there is strength in these bars as well. But when we look at the pane 3 we see that the effort was high but the result was poor.  So there is a mismatch between the effort and the corresponding result which indicates weakness. The reason could be that the smart money has been distributing without bothering for higher prices. So these two bars (marked 2 and 3) really indicates weakness rather than strength. As you can see the weakness manifested from the very next bar the market came down. So looking at the effort and the results can tell us more about the bars. This is helpful in bar to bar analysis.

I am planning to release the new indicator “Effort Index” soon. More about is soon.

Buying and Selling Pressure Indicator

My Buying and Selling Pressure Indicator has invoked lot of interest and have received many requested.  This is actually a very simple indicator using the daily excursion of the price.

Many times it is just a matter how we are looking at the data.  We can glean lot of information if we look at the data the right way. My Buying and selling pressure indicator is also the same case. Very simple Indicator, using the open, High, Low and Close and the volume. It obviously not a Holy Grail, but does give a very good picture of the buying and selling pressure.

I am sharing the afl for the same. There are two indicators. One is a Raw Buying and selling pressure Indicator.  The Raw buying and selling indication is provided in terms of a Histogram. Green bars above zero show the buying pressure and the red bars below the zero line show the selling pressure.  This presents a good visual representation of the dominating pressure.

The second is a smoothed version with version with a yellow line representing the selling pressure and a turquoise line which represents the Buying pressure. If the turquoise line is above the yellow line it would mean that the Buying pressure is more and vice versa. The difference between the two is plotted as a Histogram. This is a cumulative value of the buying and selling pressure and provides a easy visual presentation of the dominating pressure.

These two indicators can easily compliment your main strategies like Volume Spread Analysis..

You can also watch my video on this Indicator..

Download the Indicator Set.