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Mr. Tomlinson / superfragilistic,
There is one logical way to separate the
buying volume from the selling volume. <span
> We assume that if the offer is taken then
it constitutes a buy and if the bid is given then it constitutes a sell. There
is a counter running that cumulates the volumes on the bid and on the offer. One
usually gets a very good indication of what the dominant pressure is and where
there is a pressure shift by plotting the difference of these two running
totals. This is also great for picking up accumulation and distribution days when
a divergence occurs. Price goes up on net negative volume (volume at bids are
greater) on a distribution day and vice versa. Obviously this works only on
intraday data with tick volume. My two bits for what its
worth. Hope it helps.
Best Regards,<font
color=navy>
Vignesh Eswar<font
color=navy>
<span
>-----Original Message-----
From: Andrew Tomlinson
[mailto:andrew_tomlinson@xxxxxxxxxxx]
Sent<span
>: <st1:date Month="6" Day="17"
Year="2004">Thursday, June 17, 2004<font size=2
face=Tahoma> <st1:time
Hour="1" Minute="57">1:57 AM<span
>
To: equismetastock@xxxxxxxxxxxxxxx
Subject: RE: [EquisMetaStock
Group] Question on color coding price & volumn
<span
>
<span
>Superfragalist<font size=2
face="Courier New">
No offense taken, particularly as I have only just
understood the point you
are trying to make (my slowness, not yours).
Actually I'm still a little
confused - as there is a buyer and a seller to
every trade, how can you
separate out the volume associated with buys from
that associated with
sells? The only thing close that I can think of
are the indicators that try
to allocate volume according to the nature of the
price move, like Chaiken
Money Flow, or which track the size of trades on
up or down ticks, like
Birinyi's Money Flow Index, so as to try to take a
guess at separating
customer from dealer volume. What am I missing?
Andrew
-----Original Message-----
From: superfragalist
[mailto:no_reply@xxxxxxxxxxxxxxx]
Sent: Wednesday, June 16, 2004 12:04 PM
To: equismetastock@xxxxxxxxxxxxxxx
Subject: Re: [EquisMetaStock Group] Question on
color coding price & volumn
Andrew
I don't mean to be obstinate. I understand from
your post you're
using this as a visual aid. However, it's a
misleading visual aid
that most of the newbie's aren't going to
understand. They are going
to think that they are looking at a volume bar
that is totally made
up of the volume that was up or down. The formula
is passed around
without an explanation as if it's a way around
something that should
have been done in MS to begin with.
You may be able to keep the meaning of this visual
aid straight in
your mind, but most people can't. They see those
red bars and those
green bars and they think down or up, not total
volume with some of
the volume up and some down.
The only volume that is given in MS is total
volume. That needs to be
made clear to newbie's. There's no way around
using total volume and
total volume is not up or down volume, it is both
added together.
In the example I gave regarding the NYSE, you'll
find many days where
the up volume is higher than the down volume but
the price of a
tracking stock like the SPY (closet thing we have
to a tracking stock- -you
could use the index) still declined.
There are services that provide up and down volume
for each symbol,
but you have to use an additional program running
with MS, which
means you can't incorporate the numbers into MS
for analysis, unless
you export them to excel and import then into MS
daily.
--- In equismetastock@xxxxxxxxxxxxxxx,
"Andrew Tomlinson"
<andrew_tomlinson@xxxx> wrote:
>
> Guys
>
> As I understood the enquiry, and as I use
this color-coded volume
indicator,
> the intent is simply to provide an easier
visual appreciation of
whether the
> periodic price movement is supported by
volume. In particular, was a
> particular day an accumulation day (higher
price on heavier volume)
or a
> distribution day (lower price on heavier
volume). This is how
Investor's
> Business Daily presents its charts in the
newspaper and on its
website, for
> example.
>
> No new information is provided. It's just a
visual aid. The height
of the
> histogram bars still give you periodic
volume. We're just coloring
the bars
> to include some price information.
>
> I use the following for a distribution day:
>
> If(C<Ref(C,-1) AND V>Ref(V,-1),V,0),
which I color as a thicker red
> histogram bar.
>
> You could make it more discriminating by
referring to average
volume rather
> than yesterday's figure. Also if you want to
do this for the indices
> (NASDAQ, S&P500) you have to use the
security function for the price
> reference, or use the appropriate ETF as a
proxy.
>
> Andrew
>
> -----Original Message-----
> From: praktikus_ms [mailto:praktikus@xxxx]
> Sent: Wednesday, June 16, 2004 4:20 AM
> To: equismetastock@xxxxxxxxxxxxxxx
> Subject: Re: [EquisMetaStock Group] Question
on color coding price
& volumn
>
>
> Andrew,
>
> If you look at up and down days (what is
related to prices) and you
> are coloring volumebars according to this up
and down days, the
> source of the colored bars is related to the
price action and not
to
> the volume. If our data supliers would
provide more than just plain
> volume, perhaps something like volume ticking
up/down we would have
> another source for color coding by volume. By
now coloring volume
not
> related to price action is limited to comparing
it to the volume
info
> as a whole.
>
> Martin
>
>
>
> --- In equismetastock@xxxxxxxxxxxxxxx,
"Andrew Tomlinson"
> <andrew_tomlinson@xxxx> wrote:
> > "That formula is simply price
dependent volume which means if the
> > price goes up that bar, it is assumed
the volume must be
positive.
> > That relationship is ify at best. So all
your getting is your
price
> > line (c) repeated in colored bars."
> >
> > Actually, no. The formula gives you a
volume histogram, colored
> according to
> > whether the price is up or down. It
gives you volume, not price.
>
>
>
>
>
>
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