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I recently came across the concept of using a Value Area as a basis for
trading. This sounds similar to a Market Profile concept. I would like to
program this or have suggestions as to how the concept could be coded in TS.
Concept is as follows:
The Value area is defined as the range of PRICES (bands) where 70 percent
of yesterdays VOLUME (tick volume) takes place.
The resultant values are calculated on yesterdays data and the bands
graphed on todays.
This is not as simple as looking at the price points that occur at the
15% and 85% increments (that is 70% in the middle). I've tried that. Looking
at the chart, this is obviously not correct.
I have struggled with this one for a while without success. Any help in
the form of code or with just how to relate the price and volume properly
would be much appreciated.
Karl kschr@xxxxxxxxxxx
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