Riding the Wyckoff Wave

[gassah]

	Quote:	DbPhoenix
	However, the software is also a lot cheaper. As long as his users remain ignorant of Constant Volume Bars, the market for the software should remain intact.

I might have an interest in the software because I'd like to have something that measures swing volumes and use it in other ways, otherwise....

[DbPhoenix]

With CVBs, though, it takes maybe 10 seconds to just count it.

Of course, you've got the big bucks. Why not just wait for the Db's Cajas Famosas software? I'll give you a big discount.

[gassah]

	Quote:	DbPhoenix
	With CVBs, though, it takes maybe 10 seconds to just count it. Of course, you've got the big bucks.

What are Constant Volume Bars?

[DbPhoenix]

Bars in which the volume for each is constant, according to your settings. For example, they're similar to range bars except that a new bar forms after a given number of shares or contracts has been traded. Since they don't factor in time, they're a good compromise between the standard time bar and P&F.

Here's a CVB variety of the chart we've been discussing. Notice that it's fairly easy to see that the "thrust" of the volume is to the upside, especially after the bottom is reached.

[Tannism]

Now I see what Volume OHLC means in quotetracker.com software.

There is no charge for the software. Some brokers provide data as part of using them.

This is how XOM charts up both ways. Volume 500K.

[DbPhoenix]

One advantage of it is that the trader can eliminate the volume window. However, I can't use it for signals as time is a factor in my signals.

For charting the 24/7 activity, tho, it can't be beat as the overnite amounts to only a few bars, not 17 hours' worth.

[Simple]

Are you still using Sierra Chart db?

It could easily do a variant time chart where overnight bars were compressed by X (specify eod and bod + X). That would be good for showing any structure without the large number of bars and you wouldn't be hostage to o'night volumes to determine your ratio.

[gassah]

W analyzes intraday swings in the course and I've wanted to apply it to daily and weekly charts but have never gotten around to it. It would be nice to be able to anticipate the transition from trend to range and vice versa before either one is clearly defined, so that one can switch from a trend following to a range bound strategy in a timely fashion.

Attached is the SPY daily using the trial Ord program. It looks as though the end of the trend in 2007 could have been anticipated with this data. The red numbers are the average volumes per swing that Ord prints out but it looked to small to post. I've added the % change for a couple of swings.

I think the first clue to the end of the trend was the high volume reaction at BC with 140m average shares vs. the 68m from AB. This might be called preliminary supply.

The CD rally is shorter than the AB swing (14% gain vs. 20%) but volume is almost double (120m vs. 68m). This is similar to an up bar with a more narrow spread on much higher volume; or supply overcoming demand.

The third clue, if two weren't enough, was the large volume DE reaction with the 100% retracement of CD. Both, in and of themselves, suggested a range formation. The low volume rally, EF, with the volume cut in half allowed for the anticipation of the upthrust at F.

[DbPhoenix]

Volume aside, you could just compare the buying and selling waves.

And it doesn't cost anything

[Tannism]

[quote=gassah;34830]W analyzes intraday swings in the course and I've wanted to apply it to daily and weekly charts but have never gotten around to it. It would be nice to be able to anticipate the transition from trend to range and vice versa before either one is clearly defined, so that one can switch from a trend following to a range bound strategy in a timely fashion.

The warning label on the zig zag is that the last leg will change until the prices are reversed by the filter amount. When the turning point is identified, prices have moved at least the filtered amount in the opposite direction. I think the zig zag on the Ord Daily Chart is 6.25%.