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[RT] Re: Using Volume in designing indicators



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In a message dated 1/16/00 8:57:14 AM Eastern Standard Time, GREHERT@xxxxxxx 
writes:

<< I generally compare today's volume with a 40 day SMA of Volume; or an even 
 better method I'm moving to is to use the (StockVol)/(S&PVol) ratio as a way 
 to correct for quiet days in the market. >>

Jerry,
     I wrote an Adaptive Moving Avg. with a volume ratio to speed up an 
exponential average.  If the vol/(20 day avg. vol) was less than one, then 
the output is 1*the exponential (say, .095); if the ratio is greater than 1, 
then ratio*exponential.  I did this in Excel, but could not get it to work in 
Metastock, because if today had a new multiplier, that new number would be 
plugged into the whole series.  Don't know if I am making it clear.  If you 
want the formula to play around with, let me know, it did a pretty good job 
of responding to changes in volume.

RayF