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You can also use an MCO type oscillator on the up volume minus down volume (it's
not a good standalone system - but it is a good indicator). Robyn
Mark Brown wrote:
> Net Up Volume as a Percentage of Total NYSE Volume
>
> Chart http://24.0.100.173/charts/S261.gif uses volume to determine if the
> market is overbought, and thus in danger of a sell-off, or oversold, and
> thus ripe for a rally.
>
> The chart's top clip shows the Standard and Poor's 500 stock index while the
> bottom clip features net up volume as a percentage of total New York Stock
> Exchange volume. We start the calculation by subtracting the volume for
> stocks which closed lower on the day from the volume for stocks which closed
> up for the day. This yields the net up volume figure, which is then
> smoothed with a 12-day moving average. Next, the total volume for the New
> York Stock Exchange is likewise smoothed with a 12-day moving average, and
> the ratio of the smoothed net up volume to the smoothed total volume is
> determined...
>
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