Re: [amibroker] (Price * Vol ) as a new indicator?, AmiBroker Email List Archive

Dear Tomasz and other members,

Logically, combination of price and vol index is a better indicator than use price or volume indices separately. Price and volume combined eliminates distortion such as when prices increasing while volume decreasing; or conversely when prices decreasing while volume increasing.

My comments on the first formula:

I plot the chart to a stock price chart, this indicator works best if we change Lookback period to 3 and sum period to 6. Changes in direction (either up or down) is a good buy or sell signals.

My comments on the second formula:

The problem with inclusion of volume into an indicator is that sometimes the volume spikes are short-lived, so averaging must be only a shorter period (the shorter the better), otherwise we "missed the train". Change the sum period one to 2 and period two to 4 looks OK. The uptrend continue as far as red line is greater or equal to blue line. If you want to use this chart for day trading, you can change sum period one to 1 and use only red line (short period), ignore the blue line.

Anyway, these formulas need to be refined. Let the expert members do it for all of us. For example how to smoothen the lines from "wild spikes".

Regards,

Kethek

----- Original Message ----
From: Tomasz Janeczko <groups@xxxxxxxxxxxxx>
To: amibroker@xxxxxxxxxxxxxxx
Sent: Friday, March 7, 2008 2:24:10 AM
Subject: Re: [amibroker] (Price * Vol ) as a new indicator?

Hello,

I think that the previous code may be too much complicated.

For simple C * V chart, with 2 different averages use this:

Period1 = Param("Sum period1", 15, 1, 100 );
Period2 = Param("Sum period2", 25, 1, 100 );

Plot( MA( C * V, Period1 ), "MA(C*V,"+Period1+")", colorRed );

Plot( MA( C * V, Period2 ), "MA(C*V,"+Period2+")", colorBlue );

Best regards,
Tomasz Janeczko
amibroker.com

----- Original Message -----

From: Tomasz Janeczko

To: amibroker@xxxxxxxxx ps.com

Sent: Thursday, March 06, 2008 8:18 PM

Subject: Re: [amibroker] (Price * Vol ) as a new indicator?

Hello,

The following should do the work. It checks the lookback-day change in price and volume.

If both are positive then "1" is the result, otherwise -1. Then such binary signal is summed up over period-bars.

Lookback = Param("Change lookback", 1, 1, 100 );

ChgPrice = ROC( C, Lookback );
ChgVolume = ROC( V, Lookback );

BothUp = IIf( ChgPrice > 0 AND ChgVolume > 0, 1, -1 );

Period = Param("Sum period", 25, 1, 100 );

Plot( Sum( BothUp, Period ), "UpVolANdPrice", colorRed );

Best regards,
Tomasz Janeczko
amibroker.com

----- Original Message -----

From: Kethek Ogleng

To: amibroker@xxxxxxxxx ps.com

Sent: Tuesday, March 04, 2008 1:28 PM

Subject: [amibroker] (Price * Vol ) as a new indicator?

Hi, I am not an IT guy, so it is rather hard for me to learn AFL and its logic. I am wondering if someone has written a formula based on (Price * Vol).

Logically, when Price or Vol goes up, the chart (price * vol) goes up too, so this is a buy or uptrend signals. The reversal would be when price or volume goes down. I am wondering if the crossing of MA (Price*Vol) of 2 different period, would be buy or sell signals. Sometimes the peak of the chart happens when price keeps going down, eventhough the volume goes up (when "big guys" exhausted to keep price from falling). This is should be strong a reversal (sell) signals.

Frankly, I dont know how to put my idea into AFL. Can someone formulate my idea into indicator and explorer for all of us?

Regards,

kethek

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