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 …..

Friday, June 14, 2013

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

Thursday, June 6, 2013

Video On "Effort Index"

My latest video on the latest Indicator "Effort Index"

Afl will be available soon.