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Post From: Larry Williams GSV indicator

[2018-12-02 04:59:00] Link To Thread - Link To Post [Go To First Post]
User517020 - Posts: 7
I am wondering if you could create an indicator of Larry Williams. Larry Williams introduces this as a concept in his book Long-Term Seecrets To Short-Term Trading. He calls it as a Greatest Swing Value (GSV). This value is calculated as the distance between open and high (long side) or open and low (short side). He takes the four day average of this value. But it is bit more complicated than that. For the long side he counts only the difference (high-open) for bars that close down. And for the short side he counts only the difference (high-open) for bars that close higher). If this is something you guys could add, I would really appreciate it. In case I didn't explain that clearly enough, I've copied and pasted an explanation of the indicator from someplace else: Consider a single day of trading in a futures market. The session will have an open, and at some stage it will make both a high and a low. So the high can be thought of as the maximum level above the open to which the bulls were able to drive price during the day, while the low represents the maximum level below the open to which the bulls were able to move the market. Here we have a simple measure of the relative power of both buyers and sellers on that day. The distance between the open and the high is called the ‘buy swing’. The distance between the open and the low is called the ‘sell swing’. Now consider the next trading day. If price moves below this day’s open by an amount greater than yesterday’s sell swing, then this indicates that we have a new amount of sellers in the marketplace today. By the same token, if price moves above the open by an amount that is greater than yesterday’s buy swing then new buying power must have entered the market. If we take an average of all the buy swings over a previous number of days we will have an idea of the amount of buying pressure in the market over a slightly longer (and more representative) period. If price is able to move above its open by an amount that at exceeds this, then it would seem fair to assume that something has changed. Obviously the reverse will be true for sell swings. There is one final improvement to be made before we have a useable concept. By considering sell swing values for only those days where price closed above the open (in effect the days on where the bulls ‘won’), then we will have arrived at a measure of the amount by which price could decline without triggering a sell-off. These swings represent the bear’s ‘failed’ attempts at sell-offs, and as such we call them ‘failure swings’. Similarly, we can identify buy failure swings by considering only days with a down close. It is an average of these values that we will use in our setup.