janderson99
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I have been developing a new simple indicator that is aimed at finding stocks that show changes in bar patterns that may give an early signal of a likely surge in price.
The indicator uses the following components.
=> The absolute rate of change of volume as a percentage
=> The relative position of the close on the True Range as a percentage
=> The absolute rate of change of the True Range as a percentage
The components are simply added and the signal smoothed using a 2 period moving average.
The advantage of such simple signal is that it is easy to interpret in terms of the components.
For example a high signal means that the closing price is close to the high for the bar, and both the volume and true range (spread) have increased or decreased substantially. A rapid rise in value from a deep trough is used for the screener.
The indicator is used as a buy signal, but is mostly used for screening stocks for further analysis using VSA concepts and other bar pattern and indicator methods.
It is combined with a price signal or indicator. A chart is shown below. It gives a very early signal of a price surge.
It is related to the Money Flow Index and other indicators, but as far as I'm aware is the first to integrate these 3 components.
I would be interested in your comments and finding out about in other similar approaches.
Cheers,
The indicator uses the following components.
=> The absolute rate of change of volume as a percentage
=> The relative position of the close on the True Range as a percentage
=> The absolute rate of change of the True Range as a percentage
The components are simply added and the signal smoothed using a 2 period moving average.
The advantage of such simple signal is that it is easy to interpret in terms of the components.
For example a high signal means that the closing price is close to the high for the bar, and both the volume and true range (spread) have increased or decreased substantially. A rapid rise in value from a deep trough is used for the screener.
The indicator is used as a buy signal, but is mostly used for screening stocks for further analysis using VSA concepts and other bar pattern and indicator methods.
It is combined with a price signal or indicator. A chart is shown below. It gives a very early signal of a price surge.
It is related to the Money Flow Index and other indicators, but as far as I'm aware is the first to integrate these 3 components.
I would be interested in your comments and finding out about in other similar approaches.
Cheers,
