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Murat,
I am glad I could make a contribution that you found useful. Your post made
my day. For the normalized PVT, I just took Chande's, and perhaps others,
idea for a a normalized RSI (i.e. StochRSI) and applied it to PVT. PVT is a
more refined version of on balance volume. The idea is presented along with
many good ideas in a very worthwhile book called the "The New Technical
Trader" by Chande and Kroll.
I use a fast and slow, normalized version of PVT and interpret their action
the same way I would interprete price stochastics lines. That is, I watch
for crossovers in oversold or overbought areas and for divergences.
I am a disgressionary, swing trader and I watch price (candlesticks) and
trendlines first and formost. I also pay quite a bit of attention to
StochRSI to identify overbought and oversold conditions. With this style, I
use normalized PVT as a distant secondary indicator only to confirm my other
analysis.
You Murat, or others, may have payed closer attention to the signals it
offers and I would be interested in learning from your observations. The
formulas I have been using without testing or optimization are shown below:
Fast Line
Mov((PVT()-LLV(PVT(),19))/
(HHV(PVT(),19)-LLV(PVT(),19)), 5, S)
Slow Line
Mov(Mov((PVT()-LLV(PVT(),19))/
(HHV(PVT(),19)-LLV(PVT(),19)), 5, S),3,S)
I am usually in trades for an average of six or seven trading days and I am
a very slightly better than break even trader.
Dan
>From: Mikey <mtg1021@xxxxxxxxxxxxx>
>Reply-To: metastock@xxxxxxxxxxxxx
>To: metastock@xxxxxxxxxxxxx, Murat Kuntel <mkuntel@xxxxxxxx>
>Subject: Re: PVT Normalized
>Date: Sat, 28 Jul 2001 23:26:02 -0500
>
>what is this indicator that you are talking about?? i must have missed it
>is
>there any way that you could share the details of it???
>
>Murat Kuntel wrote:
>
> > Dan Harels,
> >
> > Last month you graciously shared with us an indicator that you
>developed, a
> > normalized PVT which you suggested works like Stochastics. I have been
> > observing it since then and I like it very much. I noticed that at
>times
> > it leads, and at other times it keeps from an early exit for good
> > reason. First, I thank you for sharing it with us. Secondly, I would
> > appreciate if you may share any interesting patterns that works with
>this
> > indicator.
> >
> > Thank you again.
> > Murat
>
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