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Dan,
I am real glad to make you happy. Plus now we have different ways of
writing the Formula as Lars have shared and fine tuned by Lionel. Your
indicator has really finalized my search for indicators. I needed a volume
based but unlike OBV and like Stochastics, an oscillating formula, showing
the direction of money flow, the way I like to see. I use several other
Volume Indicators and all have their place, but this was the missing
link. I will look at Lars' version in the coming days.
You have asked how I used it. I trade E-Mini hit and run. I don't like to
keep an open position for a long time. Therefore I am guilty of missing
some "more" profits by exiting at the first overbought or oversold
condition. Now, What your Normalized PVT does is that it gives me the
reason to hold on the trade. For example, in a trade my oscillator
(Cycles of Bressert) may tell me that the market is overbought, I should
exit. In fact, the oscillator may head south as the price may go
sideways. But, Normalized PVT, though it may be also be at overbought,
keep going horizontally as it rolls over, like the Stochastics going
sideways above 80 line. I wait there instead of exit. As I see that your
indicator is showing me that money is flowing into the market rather than
exiting from, and chances are another rally is coming soon. In fact, my
oscillator reverses its direction together with the market and shows me
that the new direction is up. At the end of this second move there may be
some exhaustion and I exit there. SP500 daily chart shows this situation
as this indicator stayed horizontally up from its peak of 4/19 to the
market's true peak of 5/22. I also use 12 unit TRIX there which gave a
nice divergence marking the top. Of course there is also the divergence
PVT has showed at the previous bottom of 3/22 and 4/4 showing that 4/4
could be a serious bottom to rally from. Interestingly, we are about to
have a similar bottom in these days. I learned quickly not to trade
against the flow of money and Normalized PVT just helps me to avoid
this. You helped me to trade with more confidence than before. We may
benefit if others also share their observations. Thank you and may you be
more successful.
Murat
At 05:47 AM 7/29/01 +0000, you wrote:
>Murat,
>
>I am glad I could make a contribution that you found useful. Your post
>made my day. For the normalized PVT, I just took Chande's, and perhaps
>others, idea for a a normalized RSI (i.e. StochRSI) and applied it to
>PVT. PVT is a more refined version of on balance volume. The idea is
>presented along with many good ideas in a very worthwhile book called the
>"The New Technical Trader" by Chande and Kroll.
>
>I use a fast and slow, normalized version of PVT and interpret their
>action the same way I would interprete price stochastics lines. That is,
>I watch for crossovers in oversold or overbought areas and for divergences.
>
>I am a disgressionary, swing trader and I watch price (candlesticks) and
>trendlines first and formost. I also pay quite a bit of attention to
>StochRSI to identify overbought and oversold conditions. With this style,
>I use normalized PVT as a distant secondary indicator only to confirm my
>other analysis.
>
>You Murat, or others, may have payed closer attention to the signals it
>offers and I would be interested in learning from your observations. The
>formulas I have been using without testing or optimization are shown below:
>
>Fast Line
>
>Mov((PVT()-LLV(PVT(),19))/
>(HHV(PVT(),19)-LLV(PVT(),19)), 5, S)
>
>Slow Line
>
>Mov(Mov((PVT()-LLV(PVT(),19))/
>(HHV(PVT(),19)-LLV(PVT(),19)), 5, S),3,S)
>
>I am usually in trades for an average of six or seven trading days and I
>am a very slightly better than break even trader.
>
>Dan
>
>
>
>
>>From: Mikey <mtg1021@xxxxxxxxxxxxx>
>>Reply-To: metastock@xxxxxxxxxxxxx
>>To: metastock@xxxxxxxxxxxxx, Murat Kuntel <mkuntel@xxxxxxxx>
>>Subject: Re: PVT Normalized
>>Date: Sat, 28 Jul 2001 23:26:02 -0500
>>
>>what is this indicator that you are talking about?? i must have missed it
>>is
>>there any way that you could share the details of it???
>>
>>Murat Kuntel wrote:
>>
>> > Dan Harels,
>> >
>> > Last month you graciously shared with us an indicator that you
>> developed, a
>> > normalized PVT which you suggested works like Stochastics. I have been
>> > observing it since then and I like it very much. I noticed that at times
>> > it leads, and at other times it keeps from an early exit for good
>> > reason. First, I thank you for sharing it with us. Secondly, I would
>> > appreciate if you may share any interesting patterns that works with this
>> > indicator.
>> >
>> > Thank you again.
>> > Murat
>
>
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