|
PureBytes Links
Trading Reference Links
|
This is the explanation of the indicator
THE INDICATOR
To track the float turnover, you need a source for the float numbers. I use
two publications on which to base my calculations: the Investor's Business
Daily newspaper and the Daily Graphs charting service. For my work, I used
Omega Research's charting software, SuperCharts.
Here's how the WCVFI works. The float is a variable input value that must be
entered for each different stock under consideration. Starting on any given
day and working backward, the current day's volume is added to the previous
day's volume and adds that to the next previous day's volume and so on. As
each volume number from the past is added cumulatively, the computer
compares the running total with that particular stock's float. When the
cumulative total is equal to or greater than the float, a dot is placed
above that particular bar on the chart.
Then two horizontal lines are plotted on the chart. The top line shows the
highest price reached during the backward count, and the bottom line, the
lowest price. These lines serve as trigger lines for the buy and sell
signals. When the stock's price goes through the top line it gives a buy
signal, and when it goes through the bottom line it gives a sell signal. The
lines extend backward from the starting date to the bar, where the float has
gone through one complete turnover.
Some stocks with a small float may take months or years to go through one
complete turnover, while other stocks with large floats may have a rapid
turnover in a matter of days.
The program is set up to start counting backward from any date entered for
historical studies or set for the present date form constant updates. If a
stock's price is rising day after day, the program gives buy signals each
time the price goes through the line set from the previous day's highest
price reached. Looking at stocks reveals four patterns that occur often
> -----Original Message-----
> From: owner-metastock@xxxxxxxxxxxxx
> [mailto:owner-metastock@xxxxxxxxxxxxx]On Behalf Of
> leo.timmermans.lt@xxxxxxxxxxxxxxxx
> Sent: woensdag 30 augustus 2000 10:28
> To: - *metastock@xxxxxxxxxxxxx
> Subject:
>
>
> Hello,
>
> Has anybody implemented the WCVFI (Woods Cumulative Volume
> Float Indicator) and
> willing
> to share it ? Anybody experience with Float Analysis ?? (see
> www.floatanalysis.com)
>
> Thanks,
>
> Leo
>
|