To: big run who wrote (32 ) 1/27/1998 9:45:00 PM From: ftth Respond to
Hi Mike, thanks for the explaination of what you look for. Since you concentrate on price and volume, take a look at my post#27 about 'reaction leg volume'. I'm really likin' the possibilities with this. I think it shows the "degree of dominance" by either supply or demand within each trend leg better than any other indicator I've seen. Certainly better than volume alone. Other accumulation/distribution and cumulative volume indicators are applied across the entire chart, but each change of direction can be better understood by analyzing each leg individually (because each leg is "under new management"), and then comparing to recent trend legs. It would seem to show the degree of domination within each retreat or advance, and point out weak or weakening thrust. These sometimes subtle changes aren't always visible in the classical volume and a|d indicators because the accumulated values are so large once you're about 1/4 of the way into the chart that even a large volume spike on a given day only adds or subtracts a pixel or two from the on-screen plot, whereas when you "reset" the count at each trend change using this new method, the same volume change is more apparent because it's a significant portion of the smaller accumulated value within just the current trend leg. Would love to have you implement this in SC4 and see what you think. I believe the interpretation will come naturally to you since you concentrate on price and volume, although I'm sure you'll have to stare at the first one a while to get a feel for it. Since I use MetaStock, I'll have to write a text description of how it's implemented. If you're interested it giving it a look, I'll be glad to do that (it uses the zig-zag indicator to determine turning points--does SC4 have that?).
