Volume Oscillator for Amibroker (AFL)

kaiji

about 14 years ago

Amibroker (AFL)

As volume levels are increasing, shorter-term volume moving averages will rise above longer-term volume moving averages. This is similar to how shorter-term price moving averages rise above longer-term price moving averages when prices are increasing. Thus, the difference between two volume moving averages of varying lengths (i.e., this indicator) can be used to see if overall volume trends are increasing or decreasing. When the Volume Oscillator rises above zero, it signifies that the shorter-term volume moving average has risen above the longer-term volume moving average, or that the short-term volume trend is higher (i.e., more volume) than the longer-term volume trend.

There are many ways to interpret changes in volume trends. One common belief is that rising prices coupled with increased volume, and falling prices coupled with decreased volume, is bullish. Conversely, if volume increases when prices fall, and volume decreases when prices rise, the market is showing signs of underlying weakness. The theory behind this is straight forward. Rising prices coupled with increased volume signifies increased upside participation (more buyers) that should lead to a continued move. Conversely, falling prices coupled with increased volume (more sellers signifies increased downside participation).

The above information is borrowed from the Metastock help files.

Place this indicator on the same chart as the DMI spread, Demand Index, and Cyclotron indicators. These provide some interesting supporting signals. Of couse, always have a price line somewhere.

Indicator / Formula

/* Volume Oscillator */
/* Indicator, system, and exploration */
/* Steve Wiser slwiserr@erols.com */

PlusDM= IIf(High>Ref(High,-1) AND Low>=Ref(Low,-1), High-Ref(High,-1),
                 IIf(High>Ref(High,-1) AND Low<Ref(Low,-1)
                 AND High-Ref(High,-1)>Ref(Low,-1)-Low,
                High-Ref(High,-1),0));

Vm=log(EMA(V,3));
 
Buy= (C-L)*Vm+ (H-O)*Vm + 
         IIf(C>O,(C-O)*Vm,0) + PlusDM*Vm + 
         IIf(Ref(C,-1)<O,(O-Ref(C,-1))*Vm,0);

MinDM = IIf(Low<Ref(Low,-1)   AND  High<=Ref(High,-1), Ref(Low,-1)-Low,
               IIf(High>Ref(High,-1) AND Low<Ref(Low,-1)
               AND High-Ref(High,-1)<Ref(Low,-1)-Low, Ref(Low,-1)-Low, 0));

Sell= (H-C)*Vm + (O-L)*Vm + 
         IIf(C<O,(O-C)*Vm,0) + MinDM*Vm + 
         IIf(Ref(C,-1)>O,(Ref(C,-1)-O)*Vm,0);

Wm=Wilders(Wilders(Buy,3)-Wilders(Sell,3),3);

Buy=Cross(Wm,0);
Sell=Cross(0,Wm);

 
Graph1=Wm;
/*Graph2=Wilders(Wm,30);*/
Graph2=MA(Wm,8);

Graph0=0;
Graph0Style=Graph1Style=Graph2Style=5;
Graph2Color=6;


Filter= (Buy==1)  ;
NumColumns = 6;
Column0 =Ref(C+0.065,-1);
Column0Format = 1.2;
Column0Name = "Trigger Price";WriteVal(C+0.065);
Column1 = C; 
Column1Name = "Close       ";WriteVal(C);
Column1Format = 1.2;
Column2 = MA(V,17); 
Column2Name = "17 Ma Vol   ";WriteVal(MA(V,17) );
Column2Format = 1.0;
Column3 = MA(C,17)/MA(C,50); 
Column3Name = "% 17/50 ";WriteVal(  MA(C,17)/MA(C,50) );
Column3Format = 1.2;
Column3Format = 1.2;
Column4= MA(C,17);
Column4Name="17 C ma"; WriteVal(  MA(C,17) );
Column4Format = 1.2;
Column4= MA(C,50);
Column4Name="50 C ma"; WriteVal( MA(C,50) );
Column4Format = 1.2;
Column5=Wm;
Column5Name="Vol Osc"; WriteVal(Wm);
Column5Format=1.2;  

/*  End of Exploration Code. */

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