Hello ...
Thanks for the VSA Basics guide. It's one I haven't seen yet. I have a lot of reading to do. Is the script used in this guide available?
I am calling [ unarrow, vnarrow, narrow, avg, wide, vwide, uwide ] zones.
If the spread falls within a zone, you can give it a name, e.g. spread=wide.
My question was, how do you determine the boundaries of each zone?
I am trying to write a TG-like VSA script for ThinkOrSwim
I have tested the following, which seems to work reasonably well, it's getting very similar to what TG is showing me.
- Calculate the 30 moving-Median of the spreads == Fibonacci 50%.
- Then I calculate boundary for ...
* Fibonacci 178.6% == vwide=(median*178.6)/50
* Fibonacci 138.2% == wide=(median*138.2)/50
* Fibonacci 61.8% == average=(median*61.8)/50
* Fibonacci 38.2% == narrow=(median*38.2)/50
* Fibonacci 23.6% == vnarrow=(median*23.6)/50
* Fibonacci 11.8% == unarrow=(median*11.8)/50
if (spread == 0){ zone="zero"; AddSpread=false;
} else if (spread < unarrow) { zone="Unarrow";
} else if (spread < vnarrow) { zone="Vnarrow";
} else if (spread < narrow) { zone="Narrow";
} else if (spread < average) { zone="Average";
} else if (spread < wide) { zone="Wide";
} else if (spread < vwide) { zone="Vwide";
} else { zone="Uwide"; AddSpread=false;
}
if(AddSpread) {
// Add the current spread to the array to calculate the 30
moving-Median of the spreads for the next bar.
} else {
// Don't add a zero-spread or a ultra-wide spread to calculate the 30
moving-Median of the spreads for the next bar.
}
To make a VSA script, you have to describe the status of the ...
- Bar [down,up,GapDown,GapUp]
- Close [low,high,middle, etc?]
- Volume [zero, unarrow, vnarrow, narrow, avg, wide, vwide, uwide]
- spread [zero, unarrow, vnarrow, narrow, avg, wide, vwide, uwide]
- change [zero, unarrow, vnarrow, narrow, avg, wide, vwide, uwide]
With different combinations of these (combined with the status
of previous bars) you can make a ton of rules for when to show signals.
Here are many of the signals described.
http://www.forexfactory.com/attachme...02009%208:53am
But the initial challenge is to find the correct boundaries that determines
the status of e.g. the spread of a bar.
I hope this explains it well?
Trade Using VSA (Volume Spread Analysis)
).
