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Strategies & Market Trends : Technical Analysis- Indicators & Systems

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To: Richard Estes who wrote (1450)6/12/1997 8:21:00 PM
From: Paul Beattie   of 3325
 
Richard,

Is higher volume the time to buy or sell? I know what you mean. I think it may depend on what price is doing at the time. I have heard you and others say, "sell into volume". But I think that there are also opportunities when higher volume is not accompanied with corresponding price changes. This seems to occur during basing of a stock, or days or weeks prior to a run.

I created an MSWIN indicator: "dVol/dpr" defined as
Max(1, Min(100,Div(ROC(V,25,%),.0001+ROC(MP(), 25, %))))
It tends to highlight increases in volume with low increases in price. I set the Max and Min because I was only focusing on price increases.

I've played with it a bit. It's not perfect, but it highights accumulation of stock.

When does buying at highs pay off? When price keeps climbing :). I'm trying to build a consistent feel with the indicators to recognize those opportunities. I see MACD as a great indicator. I recognize that SRSI, Stoch also can give clues. CCI and Brad-CCI also attract me to investigate further.

I know your questions were more to stimulate me and others who may be reading. My answers are an attempt to explain where my baby-steps have taken me so far.. based on guidance and suggestions you've shared through the past many months. Many thanks.

Regards,

Paul
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