Hi, guys. Been a while. I've been trading via VSA for a while now and I had an idea for a new indicator. It would just make my life easier to see what I already figure out on my own. It helps speed up chart analysis. It's actually based on a pair of indicators that I use. While I am not completely ignorant of metastock language, this is still way beyond me.
The idea is to detect areas of congestion and price manipulation. Lots of trading, but not a lot of movement. This will help determine areas of support/resistance, market sentiment, etc.
The first thing that we will need is a histogram of the spread/volume. Included in this post is an indicator that does just that. The Shmeno resistance indy is customizable to calculate the spread as the open minus the close as well as the high minus the low. It can also calculate the volume/spread or spread/volume. It's pretty useful and can be tell-tale when actual volume is taken into account.
The third element would be a moving average of the spread/volume ratio. Base period: 14. This is pretty simple and should be plotted on the chart.
And the last element is coloring the bars based on very low, low, normal, high, very high and ultra high numbers. These will be defined by the bars' percentages above or below the moving average. For example, Very low would be >25% of average. In order to simplify all this, I have also included the Better Volume indy since many of the elements I am looking for are included in it and it can give insight on how this could be done. It is not the best and doesn't paint all the bars correctly, so this should be a guide only.
If anyone thinks they can swing that, I sure would appreciate it. In the mean time, I'll keep trying to learn to code so I can make it myself. If I ever get this figured out, I'll be sure to share it here. Thanks a bunch guys!
The idea is to detect areas of congestion and price manipulation. Lots of trading, but not a lot of movement. This will help determine areas of support/resistance, market sentiment, etc.
The first thing that we will need is a histogram of the spread/volume. Included in this post is an indicator that does just that. The Shmeno resistance indy is customizable to calculate the spread as the open minus the close as well as the high minus the low. It can also calculate the volume/spread or spread/volume. It's pretty useful and can be tell-tale when actual volume is taken into account.
The third element would be a moving average of the spread/volume ratio. Base period: 14. This is pretty simple and should be plotted on the chart.
And the last element is coloring the bars based on very low, low, normal, high, very high and ultra high numbers. These will be defined by the bars' percentages above or below the moving average. For example, Very low would be >25% of average. In order to simplify all this, I have also included the Better Volume indy since many of the elements I am looking for are included in it and it can give insight on how this could be done. It is not the best and doesn't paint all the bars correctly, so this should be a guide only.
If anyone thinks they can swing that, I sure would appreciate it. In the mean time, I'll keep trying to learn to code so I can make it myself. If I ever get this figured out, I'll be sure to share it here. Thanks a bunch guys!
Attached File(s)
Currency is a joke. And that's precisely why I trade it.