i invented a TA indicator

[hooligan]

it's called Volume Per %

I think it can actually help locate tops and bottoms!

It's like a volume bar chart, but instead of showing you raw volume for the given candle, it shows you the amount of volume per every 1% price moved. So it shows you how "dense" the candle was with volume.

It helps to call when market makers are sneaking in to buy or sell, since they have the power to make volume more dense without impacting price much.

If there's a spike in Vp%, that may indicate market maker activity. It can also help show if big swings in price are fakeouts, since they won't be as volume dense.

I have it on TradingView. Haven't shared with anyone but would be happy to with anyone here.

If anyone is interested in the theory behind it, read Anna Couling's "Volume Price Analysis"

[hooligan]

Example of it's use. Here is a market cycle of SPY, December 24, 2018 through March 23, 2020. Each candle is one day.

Notice how Vp% spikes a few times near the top of the market.

Screen Shot 2021-12-29 at 8.43.23 PM.png

[hooligan]

you can use it on any time interval. it's decently useful info for day trading as well...

often i notice it will give relevant back-testable signals on some time intervals and not others.

All critique welcome....if this is rubbish please let me know.

An aside, for anyone with piqued interest:
the formula is +/-(high-low)/Volume

however... high-low is really not "the total distance that price traversed" in a candle...since between the high and the low, price can travel in a wave many times before the next candle begins.....

I Wish i could get a value for "total distance price traversed".... and divide that by volume...Might be an even better indication of volume density.

the way to get that would be to add up each price-change SEGMENT. in a candle. each micro-distance between one price level and the next. that would be total price traversed. i don't know how to code that or if the data is even available...but would be nice to see.

[SOL]

@hooligan

congrats on coming up with your own indicator. Looking at it quickly it appears to produce recognizable patterns. If time permits I will look at the indicator if you still want to share it.

next year in the AI forum, we will work on something new. A sort of group specialized effort between tech-savvy individuals programmers, etc and those that have a good understanding of TA. The idea will be then to put funds as a group (not everyone will be invited to the group, but everyone will be provided with the data if we come up with something useful) to create or fine-tune technical indicators. TA will be willing to provide some funding and guidance on what tools to look at or what direction to move in terms of creating something new

While the AI forum is less active than this as it is a secondary service, We are going to attempt to do some wonderful things there. Overall we are all very impressed with the quality of and scope of knowledge demonstrated by our subscribers. It takes two to tango one to cry and three to have a party

[sunnyisland]

it's called Volume Per %

I think it can actually help locate tops and bottoms!

It's like a volume bar chart, but instead of showing you raw volume for the given candle, it shows you the amount of volume per every 1% price moved. So it shows you how "dense" the candle was with volume.

It helps to call when market makers are sneaking in to buy or sell, since they have the power to make volume more dense without impacting price much.

If there's a spike in Vp%, that may indicate market maker activity. It can also help show if big swings in price are fakeouts, since they won't be as volume dense.

I have it on TradingView. Haven't shared with anyone but would be happy to with anyone here.

If anyone is interested in the theory behind it, read Anna Couling's "Volume Price Analysis"

Yes, I would be very interested to get hold of this TA indicator please. Thank you : )

[harryg]

This is an interesting approach, congratulations. I feel that overall far too little attention is paid to volume.

Have you compared the results of H-L/V with C-O/V ?

Notice how Vp% spikes a few times near the top of the market.

I don't doubt that this is your observation, (and mine too from that graph), but it would be useful to quantify that mathematically - the ability of the human eye to see patterns after the event is legendary.

To consider: do you trade based on an 'outlier' level (and how do you define that), or a change in level over a certain amount of time and so on. Do you use it as a standalone indicator or confirming/refuting indicator in association with other signals. Or do you use it as a leading indicator to decide whether or not to take the next long/short trade using other methods (I think this one could be worth a look). Does a different pattern invalidate or reverse the trade, does it work better on the long or short side, does it work on different markets etc etc.

I know a fair bit about this stuff - please feel free to contact me if you think it could be useful.

[SOL]

All critique welcome....if this is rubbish please let me know.

When one tries to do something new, another should never label it as rubbish. Success is built on failure. Failure should be viewed as the stepping stone to success provided one learns from prior mistakes. I think this tool combined with 2 other tools to provide confirmation could prove to be useful. However, as Harryg, noted. Humans ability to see patterns after the event is legendary. The best way to see if it works is to forward test it. I have seen so many tools that looked fantastic when backtested fail miserably when forward tested.

[Budge]

All critique welcome....if this is rubbish please let me know.

When one tries to do something new, another should never label it as rubbish. Success is built on failure. Failure should be viewed as the stepping stone to success provided one learns from prior mistakes. I think this tool combined with 2 other tools to provide confirmation could prove to be useful. However, as Harryg, noted. Humans ability to see patterns after the event is legendary. The best way to see if it works is to forward test it. I have seen so many tools that looked fantastic when backtested fail miserably when forward tested.

Not only forward test but forward test in real time with real moolah. Back testing is prone to form fitting and forward testing, as Harry notes, is fudgeable. Trading it with real money, there's the acid test.

[jlhooter]

it's called Volume Per %

I think it can actually help locate tops and bottoms!

It's like a volume bar chart, but instead of showing you raw volume for the given candle, it shows you the amount of volume per every 1% price moved. So it shows you how "dense" the candle was with volume.

It helps to call when market makers are sneaking in to buy or sell, since they have the power to make volume more dense without impacting price much.

If there's a spike in Vp%, that may indicate market maker activity. It can also help show if big swings in price are fakeouts, since they won't be as volume dense.

I have it on TradingView. Haven't shared with anyone but would be happy to with anyone here.

If anyone is interested in the theory behind it, read Anna Couling's "Volume Price Analysis"

Hooligan
Please share with me. I would love to look at it and brainstorm with you. Brainstorming is a free flow of unrestricted ideas. No negative comments allowed because they restrict the chaotic process of developing something great.
I will check out Anna Couling too!
Thanks

[SOL]

Confucius on learning

A gentleman, in his plans, thinks of the Way; he does not think how he is going to make a living. Even farming sometimes has a shortage; and even learning may incidentally bring a salary. A gentleman is concerned with the progress of the Way; he is not anxious about poverty.

At fifteen, my mind was bent on learning.
At thirty, I stood firm.
At forty, I had no doubts.
At fifty, I knew the decrees of Heaven.
At sixty, my ear was receptive to truth.
At seventy, I could follow my heart's desires without sin.

[hooligan]

Screen Shot 2021-12-30 at 2.33.13 PM.png

I don't know how to convert. Pasting the raw code below.

if you paste this into your own indicator on tradingview, it should work.

---------------------------------------------------------------------------
study("Vp%", overlay=false, scale=scale.right, precision=1)

//candle percentage moved
candlebarmove = (high-low)
pricetotal = open

percentagemoved = (candlebarmove/pricetotal)

equation1= percentagemoved*100

//final equation
vol = volume

ouput2= (vol/equation1)

//PLOTTING
plot(ouput2, style=columns, linewidth=0, title="Value 3", color=blue)

centerline = hline(0, color=#808080, linestyle=solid, linewidth=1)
---------------------------------------------------------------------------

[harryg]

Screen Shot 2021-12-30 at 2.33.13 PM.png

I don't know how to convert I'm an amateur. Pasting the raw code below.
---------------------------------------------------------------------------
study("Vp%", overlay=false, scale=scale.right, precision=1)
//candle percentage moved
candlebarmove = (high-low)
pricetotal = open
percentagemoved = (candlebarmove/pricetotal)
equation1= percentagemoved*100
//final equation
vol = volume
ouput2= (vol/equation1)
//PLOTTING
plot(ouput2, style=columns, linewidth=0, title="Value 3", color=blue)
centerline = hline(0, color=#808080, linestyle=solid, linewidth=1)
---------------------------------------------------------------------------

If I understand correctly:
Vol / { [ ( High-Low ) / Open ] * 100 }

[hooligan]

yep:) was just using shorthand b4

[hooligan]

It takes two to tango one to cry and three to have a party

exciting idea abt the research group! cant wait for more feedback pls put this indicator thru its paces

[jlhooter]

Hooligan,
I was able to put your formula into a script in ThinkorSwim (TOS).
TOS scripting is awesome and somewhat easy to use once you get the hang of it. You can view other indicators and copy what they do to make your own.

I am struggling with the idea of your formula a bit and discuss in the link below. I need to dig into it more.

The following is a link of what I did in TOS and I also added a PriceAction script of my own that looks at simple moving averages v. price. I like the idea of what others do to evaluate price v. moving averages and turned some of my thoughts into a script.

I look forward to any input from anyone and any suggestions to change/add.

Link: https://docs.google.com/document/d/1tN2 ... ue&sd=true
PW: por$ches