On 11/10/2010 11:31 AM, nonlinear5 wrote:
On Nov 10, 11:13 am, ShaggsTheStud<[email protected]> wrote:
Conceptually I would look for breakouts on high volume, and/or reversals on
high volume. Is that what you had in mind?
Yes, reversal on high volume is what I am looking at. Visually from
the charts, the relationship seems to be present (I'll attach a few
charts later today). However, quantifying this relationship and using
it in my strategies did not yet improve my existing strategies which
do not use volume at all.
Yes, but I think you are on to something with trading multiple
strategies concurrently
that appear to trade with low frequency, spend little time in market but
with high
probability of success. Perhaps the addition of a strategy with
similar -albeit not better- results that
utilizes volume has value for diversification.
I have coded and used two volume-based indicators so far:
1. Volume velocity. This is conceptually similar to BalanceVelocity.
It measures the difference between the average volume over a shorter
and longer time intervals.
2. UpDownVolume. This is similar to RSI. If the price is up, I count
the corresponding volume as "up Volume", and if the price is down, I
count the corresponding volume as "down volume". Then UpDownVolume
volume is
100 * (upVolume - downVolume) / (upVolume + downVolume)
If anyone has ideas about other volume-based indicators, please post
here.
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