[Blu-Ray]

Originally Posted by jjthetrader »

I'm just seeing this thread now. I didn't get an email saying there was a response. Hmmm.

Here's some more charts. I put up a few daily well know charts to make it easy on you followed by a 2min ES chart from today. I'm Eastern Standard Time. Session starts at 9:30 for me.

JJ, I think you do this on purpose, drop it on me for the weekend

Thank for the charts, I'll mull over them during the weekend

Originally Posted by jjthetrader »

Through Trial and error I reproduced the Relative Volume Bands from TGuider if anyone is interested. I'll post a screenshot.
The only thing I don't know how to do and don't even know if it can be done is that as volume is increasing, the average lines will get thicker thus increasing the range that would be considered average.
You'll have to tell me if it can be done Blu-Ray. As is though it is a very good representation.

If you can send me the code, I'll take a look at it, I have an idea on how to get around this, but would need to know, if possible, what the parameters are for the thickening of the lines.


Cheers

Blu-Ray

[jjthetrader]

Thanks Blu-Ray. I will send the code as soon as I boot up my trading computer. I don't have the parameters for the thickening but if you left an input I'd do a trial and error. It's really not that important anyway if it can't be done. I'd like to paint the whole background of the volume indicator different colours just like in my tradeguider chart examples.
Talk to you soon.

[jjthetrader]

Any reading equal to the upper band = Very High Volume.
Any reading above the upper band = Ultra High Volume
Any reading between the middle band (average) and upper band = High Volume
Any reading around the middle band = Average Volume
Any reading in the area below the average band and the lowest band = Low Volume
Any reading below the bottom band = Very Low Volume

Logic behind it:

Average range is just a 15 bar EMA.
Very High Band is 1.75 times the 15 EMA.
Very low range is 0.25 times the 15 EMA.

It's that simple. Marketing makes it sound complicated. But if all you're doing is measuring relative volume it makes perfect sense.

To do the colours in metastock you're on your own

[BlowFish]

I didn't see that this thread had been posted to either! I replied in the VSA thread.

[jjthetrader]

Originally Posted by BlowFish »

I didn't see that this thread had been posted to either! I replied in the VSA thread.

That's how much the smart money doesn't want you to know these things, they're intercepting your emails.

[BlowFish]

Well don JJ cracking it (and of course Blu for the code). I am rather surprised that they use a fixed multiplier. Years ago (just after VSA became tradeguider from memory). I talked to them about this and suggested they added bands. In those days it had a simple MA and that was it. They obviously took that on board but did not the bit I suggested about using standard deviations! To me it just 'makes sense' as it actually uses statistics so you know high and ultra high are statistically just that. Its probably of no mater (you don't see any lines on Sebastians charts hehe) Of course it is the principles that are important but I have a hunch we might actually be able to 'improve' on TG. Anyway don't want to detract from the great contribution so once again ....

[jjthetrader]

The bands appear to be fixed. There may be a more complex calculation for it but using trial and error they match. Plus you don't really give a whole lot of weight to the bands anyway, they're just a quick visual que as to what volume is doing relatively. Once volume goes into high territory you start watching the spread and close a whole lot closer and vice versa.

So std dev would be a nice visual cue as well. I would encourage a banding system like this as well and would love to see it.

[mister ed]

Originally Posted by jjthetrader »

That's how much the smart money doesn't want you to know these things, they're intercepting your emails.

OMG!!!! You're right - I didn't see it either! Thanks for the logic jj, very east to put this into Metastock.