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Hi Mark,
Preston's formula does exactly what you asked for, so I'm not quite sure why you say that it's "not exactly what you were looking for" ..... ??? However an alternative, longer and less elegant (but perhaps more "English language-like") coding of your concept might be:
{$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ :-)}
HighestVolume45d:= HHV(V,45);
LowestVolume45d:= LLV(V,45);
VolRange:= HighestVolume45d - LowestVolume45d;
Palmer:= 100*V/(VolRange + 0.000001);
Smoothed:=Mov(Palmer,5,E);
BuyThreshold:=67;
SellThreshold:=33;
BuySignal:=100;
SellSignal:=0;
SignalOutput:= If(Smoothed>BuyThreshold,BuySignal, If(Smoothed<SellThreshold,SellSignal,50));
{Now display results: 100= (your idea of) "Buy", 50=Null, 0=(your idea of) "Sell"}
Smoothed;
SignalOutput
{$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ :-)}
Attached is a chart for you showing Apple Computer (APPL) price in the middle window and
in the bottom window the actual volume (dark red bars), your smoothed "Palmer Indicator" (bright red line),
and your proposed indicator (light blue line).
What you can see is that the indicator response due to high volume (your proposed "Buy" signal) appears to make sense and to correspond to price turning points, either tops OR bottoms, but the low volume response (your proposed "Sell" signal) really does not correspond to anything.
This is because the big price action occurs when a lot of people (or a few people with very big orders) are in the market and the volume is high. Therefore I suggest that you re-examine your indicator, forget about the low volume threshold (because nothing much is happening then), try adjusting the high volume threshold value a bit, and use this high volume response not as a buy indicator (your original concept) but rather as an an indicator for TURNING POINTS, which could be EITHER tops or bottoms.
If you want to read an intersting book about using volume to help your trading, you might try Donald Cassidy's book "Trading on Volume - The Key to Identifying and Profiting from Stock Price Reversals". (McGraw Hill publishers, 2002).
Happy trading,
Cheers,
TonyM
----- Original Message ----
From: markumansky <no_reply@xxxxxxxxxxxxxxx>
To: equismetastock@xxxxxxxxxxxxxxx
Sent: Thursday, May 24, 2007 3:50:36 PM
Subject: [EquisMetaStock Group] Re: Palmer Indicator
Preston,
Not exactly what i was looking for but thank you for your suggestion
and assistance. Its very much appreciated! !!
Regards,
Mark
--- In equismetastock@ yahoogroups. com, pumrysh <no_reply@xx .> wrote:
>
> Mark,
>
> My bad! Last line was wrong. Should be:
>
> {Normalized Volume}
> Ind:= Volume;
> Npds:=Input( "periods to normalize",
> 1,500,45);
> Norm:=(Ind-LLV( Ind,Npds) )
> /(HHV(Ind,Npds) -LLV(Ind, Npds)+.0000001) *100;
> Norm; Mov(Norm,5,simple) ;67;33;
>
>
>
>
> Enjoy,
>
>
> Preston
>
>
>
> --- In equismetastock@ yahoogroups. com, pumrysh <no_reply@> wrote:
> >
> > Mark,
> >
> > Hope you've been following the Zero Lag MACD thread with Paul and
> I.
> > You can do the same thing with volume like this:
> >
> > {Normalized Volume}
> > Ind:= Volume;
> > Npds:=Input( "periods to normalize",
> > 1,500,45);
> > Norm:=(Ind-LLV( Ind,Npds) )
> > /(HHV(Ind,Npds) -LLV(Ind, Npds)+.0000001) *100;
> > Norm; Mov(Volume,5, simple);67; 33;
> >
> > Hope this helps,
> >
> > Preston
> >
> >
> >
> >
> > --- In equismetastock@ yahoogroups. com, markumansky <no_reply@>
> > wrote:
> > >
> > > Can someone help me build an indicator that would show me current
> > > volume relative to recent history. The theory goes like this:
> > > - The current volume is divided by (45-day highest volume minus
> 45-
> > day
> > > lowest volume times 100) to yield a percentage of range.
> > > - Then averaged the percent volume over 5 days to smooth it and
> > better
> > > see a trend.
> > > - Then, put a Buy alerts at 67% and a Sell 33%.
> > >
> > > Any coding assistance would be greatly appreciated! !!!!!
> > >
> > > Thanks!
> > > Mark
> > >
> >
>
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