[RT] Normalized Weighted Volume Indicator

[Bob Fulks <bfgroups@xxxxxxxxxxx>]

I modified the original "Weighted Volume" as I described before to use "TrueRange" rather than "Range":

   Vol = Vol + (Volume / Average(Volume, Length)) * (Close - Close[1])/TrueRange;;

I then added a Reference line calculated as:

   Ref = Ref + (Close - Close[1])/TrueRange;

I then subtracted the Reference line from the weighted volume to arrive at a Normalized Weighted Volume:

   NWV = Vol - Ref;

Attached are some pictures. 

In the top subgraph of each, the Price is green, the Weighted Volume is red, and the Reference is blue.

In the bottom subgraph of each, the Normalized Weighted Volume ("NWV") is the black curve.

These are weekly bars for several stocks. 

I found it interesting that the black curve for SPY (and QQQQ) move down continuously. Can anyone suggest a reason why?

Bob Fulks





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