Date/Time: Sat, 20 Oct 2018 14:10:09 +0000
Post From: Offering To The Community: On Balance Volume Price Movement With Filters (also By Tick)
|bjohnson777 (Brett Johnson) - Posts: 237|
I've been programming some indicators from my base tool kit and am offering them to the community. I request they be added into the main SC distro once checked over.
From the "Display Study Documentation" button:
On Balance Volume Price Movement With Filters (OBVPM). An original indicator by Brett Johnson made in 2014. The intent is to help identify weak price movements from stronger ones by using volume with a scaling multiplier of bar height and bar close to close distance to create a balance function. Think of it as price distance pushed by volume. This graph should be plotted on the main price graph with an independent scale. If you have tick by tick data, use the "By Tick" version for much better accuracy. OBVPM is not locked to the price graph and will float and stretch, so the lines being above or below each other is totally relative. What is important is comparing the size of the price move with the size of the OBVPM move. Individual OBVPM bar values by themselves hold no meaning. The pattern is what's important.
The "Set OBVPM Smoothing?" option will enable a moving average filter to the output line. EMA5 is recommended to help keep the noise down and prevent false signals.
This version has a Volume Filter option to handle cases when a volume spike smashes the indicator making it hard to read. Large institutions sometimes do this to hide their activity afterward. The "Straight" option passes volume data through without any filtering. The "Log" option runs each volume bar through the log function making a type of "log scale". The "Square Root" option runs each volume bar through the square root function making a type of "square root scale". The "MA Clip" option will clip volume above a chosen moving average. To learn the movement characteristics of each, it is recommended to put them all on one chart for equal comparison.
Observations. Log scale will tend to follow price closely. While it's useful to verify price movement, it's more useful to have the relative volume push distance. Take note of current peak and dip heights relative to previous ones. Larger price moves with smaller OBVPM moves indicate price weakness in that direction. In Straight mode, some sharp price reversals will show up as rounded reversals in the OBVPM line.
Minor update 2018-01-31. No major function changes.
Regular compiles moved to "Brett Johnson's Standard Tool Kit" DLL.
Quick compile instructions:
Date Time Of Last Edit: 2018-01-31 07:26:04
OnBalanceVolumePriceMovementWithFilters.cpp - Attached On 2016-10-15 07:03:15 UTC - Size: 8.31 KB - 51 views
OnBalanceVolumePriceMovementWithFilters.dll - Attached On 2016-10-15 07:03:23 UTC - Size: 82.5 KB - 35 views
OnBalanceVolumePriceMovementByTickWithFilters.cpp - Attached On 2018-01-31 07:25:49 UTC - Size: 9.57 KB - 39 views
OnBalanceVolumePriceMovementByTickWithFilters.dll - Attached On 2018-01-31 07:25:56 UTC - Size: 812.5 KB - 51 views