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Great idea, Vignesh.
Provided the data vendor supports the
bid/ask/volume data.
DusantChief Architect<A
href="">http://www.candlestrength.com/
<BLOCKQUOTE dir=ltr
>
----- Original Message -----
<DIV
>From:
Vignesh
Eswar
To: <A
title=equismetastock@xxxxxxxxxxxxxxx
href="">equismetastock@xxxxxxxxxxxxxxx
Sent: Wednesday, June 30, 2004 4:53
PM
Subject: RE: [EquisMetaStock Group]
Question on color coding price & volumn
<SPAN
>Mr. Tomlinson / <SPAN
class=SpellE>superfragilistic,
<SPAN
>
<SPAN
>There is one logical
way to separate the buying volume from the selling volume. <SPAN
> We assume that if the offer is taken
then it constitutes a buy and if the bid is given then it constitutes a sell.
There is a counter running that cumulates the volumes on the bid and on the
offer. One usually gets a very good indication of what the dominant pressure
is and where there is a pressure shift by plotting the difference of these two
running totals. This is also great for picking up accumulation and
distribution days when a divergence occurs. Price goes up on net negative
volume (volume at bids are greater) on a distribution day and vice versa.
Obviously this works only on intraday data with tick volume. <SPAN
class=GramE>My two bits for what its worth. Hope it
helps.
<SPAN
>
<SPAN
>Best
Regards,<SPAN
>
<SPAN
>Vignesh
Eswar<SPAN
>
<SPAN
>
<SPAN
>-----Original
Message-----From: Andrew
Tomlinson [mailto:andrew_tomlinson@xxxxxxxxxxx] <SPAN
>Sent<SPAN
>: <st1:date Year="2004"
Day="17" Month="6"><SPAN
>Thursday, June 17,
2004<SPAN
> <st1:time
Minute="57" Hour="1"><SPAN
>1:57
AM<SPAN
><SPAN
>To:
equismetastock@xxxxxxxxxxxxxxx<SPAN
>Subject: RE: [EquisMetaStock Group]
Question on color coding price & volumn
<FONT face="Times New Roman"
size=3>
<FONT face="Courier New"
size=2>Superfragalist<FONT
face="Courier New" size=2><SPAN
><FONT
face="Courier New">No offense taken, particularly as I have only just
understood the point youare
trying to make (my slowness, not yours). Actually I'm still a
littleconfused - as there is a
buyer and a seller to every trade, how can you<FONT
face="Courier New">separate out the volume associated with buys from that
associated withsells? The only
thing close that I can think of are the indicators that
tryto allocate volume according
to the nature of the price move, like Chaiken<FONT
face="Courier New">Money Flow, or which track the size of trades on up or down
ticks, likeBirinyi's Money Flow
Index, so as to try to take a guess at separating<FONT
face="Courier New">customer from dealer volume. What am I
missing?<FONT
face="Courier New">Andrew<FONT
face="Courier New">-----Original Message-----<FONT
face="Courier New">From: superfragalist [mailto:no_reply@xxxxxxxxxxxxxxx]
Sent: Wednesday, June 16, 2004
12:04 PMTo:
equismetastock@xxxxxxxxxxxxxxx<FONT
face="Courier New">Subject: Re: [EquisMetaStock Group] Question on color
coding price & volumn<FONT
face="Courier New">AndrewI
don't mean to be obstinate. I understand from your post you're
using this as a visual aid.
However, it's a misleading visual aid <FONT
face="Courier New">that most of the newbie's aren't going to understand. They
are going to think that they are
looking at a volume bar that is totally made <FONT
face="Courier New">up of the volume that was up or down. The formula is passed
around without an explanation as
if it's a way around something that should <FONT
face="Courier New">have been done in MS to begin with.
You may be able to keep the
meaning of this visual aid straight in <FONT
face="Courier New">your mind, but most people can't. They see those red bars
and those green bars and they
think down or up, not total volume with some of <FONT
face="Courier New">the volume up and some down. <FONT
face="Courier New">The only volume that is given in MS is total volume. That
needs to be made clear to
newbie's. There's no way around using total volume and
total volume is not up or down
volume, it is both added together.<FONT
face="Courier New">In the example I gave regarding the NYSE, you'll find many
days where the up volume is
higher than the down volume but the price of a <FONT
face="Courier New">tracking stock like the SPY (closet thing we have to a
tracking stock- -youcould use the
index) still declined. There
are services that provide up and down volume for each symbol,
but you have to use an additional
program running with MS, which <FONT
face="Courier New">means you can't incorporate the numbers into MS for
analysis, unless you export them
to excel and import then into MS daily.
--- In
equismetastock@xxxxxxxxxxxxxxx, "Andrew Tomlinson" <FONT
face="Courier New"><andrew_tomlinson@xxxx>
wrote:>
>
Guys>
> As I understood the enquiry,
and as I use this color-coded volume<FONT
face="Courier New">indicator,>
the intent is simply to provide an easier visual appreciation
ofwhether
the> periodic price movement
is supported by volume. In particular, was a <FONT
face="Courier New">> particular day an accumulation day (higher price on
heavier volume)or
a> distribution day (lower
price on heavier volume). This is how<FONT
face="Courier New">Investor's>
Business Daily presents its charts in the newspaper and on
itswebsite,
for>
example.>
> No new information is
provided. It's just a visual aid. The height<FONT
face="Courier New">of the>
histogram bars still give you periodic volume. We're just
coloringthe
bars> to include some price
information.>
> I use the following for a
distribution day:>
> If(C<Ref(C,-1) AND
V>Ref(V,-1),V,0), which I color as a thicker red <FONT
face="Courier New">> histogram bar.<FONT
face="Courier New">> > You
could make it more discriminating by referring to
averagevolume
rather> than yesterday's
figure. Also if you want to do this for the indices <FONT
face="Courier New">> (NASDAQ, S&P500) you have to use the security
function for the price >
reference, or use the appropriate ETF as a proxy.<FONT
face="Courier New">> >
Andrew>
> -----Original
Message-----> From:
praktikus_ms [mailto:praktikus@xxxx]<FONT
face="Courier New">> Sent: Wednesday, June 16, 2004 4:20
AM> To:
equismetastock@xxxxxxxxxxxxxxx<FONT
face="Courier New">> Subject: Re: [EquisMetaStock Group] Question on color
coding price &
volumn>
> <FONT
face="Courier New">> Andrew,<FONT
face="Courier New">> > If
you look at up and down days (what is related to prices) and
you> are coloring volumebars
according to this up and down days, the <FONT
face="Courier New">> source of the colored bars is related to the price
action and not to
> the volume. If our data
supliers would provide more than just plain<FONT
face="Courier New">> volume, perhaps something like volume ticking up/down
we would have > another source
for color coding by volume. By now coloring volume <FONT
face="Courier New">not >
related to price action is limited to comparing it to the
volumeinfo
> as a
whole.>
>
Martin>
> <FONT
face="Courier New">> > ---
In equismetastock@xxxxxxxxxxxxxxx, "Andrew Tomlinson"<FONT
face="Courier New">> <andrew_tomlinson@xxxx>
wrote:> > "That formula is
simply price dependent volume which means if the <FONT
face="Courier New">> > price goes up that bar, it is assumed the volume
must bepositive.
> > That relationship is
ify at best. So all your getting is your<FONT
face="Courier New">price >
> line (c) repeated in colored bars."<FONT
face="Courier New">> > >
> Actually, no. The formula gives you a volume histogram,
colored> according
to> > whether the price is
up or down. It gives you volume, not price.<FONT
face="Courier New">> <FONT
face="Courier New">> >
> <FONT
face="Courier New">> <FONT
face="Courier New">> <FONT
face="Courier New">> Yahoo! Groups
Links<FONT
face="Courier New">Yahoo! Groups
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