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davem1979

High Volume Spike Reversal Indicator Development

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Lastly, maybe someone could code in for Ninja Trader and Tradestation the option to use High Volume based on something like 1.5x or some user defined multiplier of the average X bars of volume...

 

Best,

David

 

Just a quick revision for NT- haven't tested it live, but I think this should do what you want. However, UrmaBlume's work in this area seems considerably more promising....

VolumeSpikeMA.zip

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Hi there all,

 

First of all thanks for this indicator and the work you have put in it.

 

I tried to make a strategy with it but since i am not a programmer i am using the

strategy creator in Ninjatrader, but when i reach the point of choosing what to trigger

a Long or Short, i can't find a way to do it with this indicator.

I know compared to the level of you guys it might be a stupid question,

but i would really appreciate it if a simple entry strategy could be created for this

indicator.

 

Sincerely and thankfully,

 

Isa

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Nice work guys, so good to have code to fit the vision. Had an idea to compliment the system being developed. It involves Walter and Bemac's modified fantail volume weighted MA project. I found another application to use the volume sensitive indicator to confirm reversal areas. It involves the two outer fantail lines (shown as white and gray) BOTH exceeding the 14 pip 50ema envelope (yellow) . The red small arrows show when this condition is met, and I mainly pay attention to the first arrow that shows up, as a signal that there is conditions for reversal. These are 5 minute bars on the EUR/USD.

 

Also notice how precise the timing was for the arrows, for the market to be ready to reverse. Also it work well with or without volume spikes. It does not work so well after a long channel breakout. I gives a few false signals now and then, but they do not usually occur with volume spikes. Below is where I posted more on this method and source code with audio alerts and possibly auto trade capacity.

 

http://www.traderslaboratory.com/forums/24/walter-s-forex-trend-trades-2364-34.html

 

Here is where I explained the complete system that integrates this tool.

 

http://www.traderslaboratory.com/forums/f34/fresh-first-crossover-strategies-7338.html

5aa70fc809ade_volexpansion.thumb.PNG.d9003d0a69bf58fb97e41bf831cd14e3.PNG

Edited by Eric Johnson

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Hi,

 

 

I discovered this indicator and I would like to know if you are using it because I think it´s a nice tool to see reversal, always together with other indicator...

 

 

Any of you have implemented???

 

 

:helloooo:

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Wouldn't recommend using the indicator, but the concepts the indicator are based on are worth looking at. I'd check out material about market profile, market delta, cumulative delta etc. and see if you can find a way to incorporate volume information into your trading. I'm not trading, but I always found the market internals, and volume based information much more helpful than tradional lagging price based indicators.

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Looking back at it now, it could be interesting to run scans on stocks with this indicator intraday, combining this with other info, such as stocks that are at 10 day lows, but in an uptrend and near a good support zone correlating with a major moving average.

 

Also, could be interesting to look at how the NYSE TICK is behaving around the spikes. For buy signals, you'd want the NYSE TICK to be showing a divergence, meaning the signal would be showing a less weak TICK than previously even though price moved lower or tested VWAP or previous lows or another type of support area.

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Nice work guys, ....

 

 

Is this Visual trader platform? Who supports it now? I thought Gain Capital bought that company...I did not know that platform is still alive...?

Edited by mjackson

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Regarding MT4---I am not aware that volume information reported in MT4 is truly accurate or valid. ...Best,

David

 

Nowhere volume is accurate except in futures...at that don’t matter at all.

Volume is activity and that is enough to compare two volume bars relative to each other. The number of volume itself is not important for one broker or in comparison to each other...Every broker will show spike in volume ...What was value of that spike volume is not important at all.

 

Furthermore...there is no guaranty at all for anything in this world. as an individual while trading for example you cannot guaranty to yourself that you will be disciplined 100% all the time....Therefore asking from others guaranty 100% for something especially from market makers is an idiotism and demonstration of insanity.

 

Therefore if somone is willing to create this indicaor for MT4 would be great ....there is no difference for cash/spot forex between MT4 broker /platform or ninja trader broker/platform.

 

Besides Windsor Direct broker provides Futures forex as well , cash forex, stock...etc...all on MT4 platform.

Edited by mjackson

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Therefore if somone is willing to create this indicaor for MT4 would be great ....there is no difference for cash/spot forex between MT4 broker /platform or ninja trader broker/platform.

.

 

Hi, felt I had to chime in to clarify mistaken information regarding MT4 volume.

 

MT4 volume is not comprehensive (there is a difference) where is davem1979 is correct about volume information being localized to the Forex broker and that Forex broker's Tier 2 liquidity provider (the bank or group of banks that Forex broker's ECN has agreements with).

 

As a heavy user of MT4 myself (around 7 years), I've found that any volume information from MT4 is tick volume, not price or open interest volume. Using volume from MT4 is not comprehensive of the entire Forex mark because volume (and price) information is decentralized amongst the Tier 1 Interbanks and the Tier 2 Bank that your MT4 broker has agreements with. There is no equivalent of a complete "Level 2" for Forex markets because its decentralized.

 

While there have been religious debates between the merits of "tick" volume and "order/price/open interest" volume (call it what you will), that's for another discussion. It is possible to code indicators looking at MT4's tick volume, but its accuracy depends on how big your broker's order book is and if they've got enough users/volatility/critical mass to accurately reflect the Forex market in order for this information to be of use to you.

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