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would it be a burden for you to post a few charts as a description ???
Murat Kuntel wrote:
> 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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