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MC, see attached. My "famous" up-inside-down volume indicator is the essence of simplicity. I simply put both upvolume and downvolume indicators (standard Tradestation issue) on the same subgraph, and arrange them so that the upvolume is inside the downvolume. Personally, I put this double indicator on two timeframes---I include it on a five minute chart, and also a one minute chart. With the one minute chart, you can more easily see how the volume is unfolding as the five minute bar is progressing.
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Tasuki, I have no problem at evaluating any method of evaluating the supply/demand balance and would enhance
VSA reading and my trading edge.
With ref. to post 982 following a query by jjtrader,:
" Many pages ago on this thread, I recommended an enhancement to
VSA in which volume would be broken down into volume up vs volume down. The "experts" on the thread didn't like my idea, but here's an example where it is valuable (in fact, invaluable). See attached chart. On your putative upthrust, the total volume is too high, but just as importantly, the upvolume nearly matches the downvolume (upvolume is seen as a green line inside the wider red line which is downvolume). This clearly shows that there was significant buying on this bar, hence it was not an upthrust. The total volume itself would have been a clue, but the picture is clearer if you separate the up from the down."
Based on your observations, I was trying to figure out your recent 5min chart. On the 5.35 bozo (WRB) there appears to be more green then red, as per the indicator on your chart, that would suggest more buying than selling, market forms a double top and reverses. Similar situation exhibits itself on the bars pointed out with a white line. Now I am no expert on up and down vol. but would appreciate if you would clarify the situation for as has been suggested that the only productive and meanifulway way forward is to illustrate these concepts via charts and explanations based on realtime trades. IMHO