StockFetcher Forums · Filter Exchange · The “Volume is greater then …” is severely flawed<< >>Post Follow-up
lockwhiz
206 posts
msg #49238
Ignore lockwhiz
modified
1/14/2007 10:35:14 AM

Price and Volume should always be used DEPENDENT on each other....most screens break this fundamental rule.

Havng these two statements does NOT cut it ..
"and volume is greater then ...."
"and price is greater then ..."
(these are being used independently ...though valid, ...not enough!)

What is more important is the number of traders....not the volume of shares traded.

Replace that,limiting "and volume is greater then ....", that is in your screens , and replace it with this code ... you will be pleased !

set{cashflow,average price(10) * average volume(10)}
set{traders,cashflow / 1000}
and traders is greater then 2000
add column traders

This is the base that all screens should begin with.




yepher
353 posts
msg #49243
Ignore yepher
1/14/2007 12:00:01 PM

Lokwhiz,

Can you please explain why that formula is better than using one of the following:
- OBV
- EMV
- Intraday Intensity


Thanks,
-- Yepher


wallman
299 posts
msg #49245
Ignore wallman
1/14/2007 12:30:00 PM

Thanks Yepher,

I'd like to know also.


lockwhiz
206 posts
msg #49255
Ignore lockwhiz
1/14/2007 10:18:04 PM

...also.

....and for these tools....
- OBV
- EMV
- Intraday Intensity
... all use price and volume together, as does my "TRADERS".
Each has a dependency of both Price and Volume.... but different.

All TA tools, use various algorithims incorprating time, price and volume... nothing else. Applying this information in different formats has allowed for a great deal of tools/analysis that we all can profit from.

I hope I made this a little clearer... if not... let me know !

enjoy !




TheRumpledOne
6,362 posts
msg #49259
Ignore TheRumpledOne
1/14/2007 11:18:37 PM

I think you are making an assumption when you divide by 1000.


lockwhiz
206 posts
msg #49261
Ignore lockwhiz
1/14/2007 11:38:46 PM

True ...but it is based on what the populous of traders consist. The majority are the small time trader ...bringing what I presume to be $1000. It is a guide to bring a standard value into the formulae. This is not a variable I am using, so given that the expected monies ($1000) is consistant for all stocks being analyzed, the margin of error is also consistant, and would not sway my results.

...the effectiveness becomes evident when looking at 100,000 share traded
Stocks priced at .01 and trading 100,000 share ... 1 trader (ie $1000.00)

This was not created to analyze a stock...but more to put seemingly similar trades into a perspective, to screen out the slow movers...



lockwhiz
206 posts
msg #49254
Ignore lockwhiz
modified
1/14/2007 11:58:26 PM

- OBV
- EMV
- Intraday Intensity

The formulae does not compare with these tools. Each has attributes that can't be replaced, and is in no way an attempt to replace any of them. The intent is to calculate the NUMBER OF TRADERS, and use this, rather then volume independently....and here is why:

example:
100,000 shares traded

this could could mean:
<A> 10 traders buying 10,000 shares each
------ or could be
<B> 500 traders buying 200 shares each
------ or could be
<C> 1000 traders buying 100 share each

Which scenario would you want to be part of ?

Could you use this info ?... knowing how many traders are buying ?

The added lines will differentiate this. I would rather invest in a stock
that has many investors interested, rather then a single pump and dump scheme in progress (extreme, I know ... but to make a point...)

I feel that knowing the number of traders is an attribute that we can benefit from.... and does not attempt to be better then any other tool ... but rather an added tool.




TheRumpledOne
6,362 posts
msg #49265
Ignore TheRumpledOne
modified
1/15/2007 8:55:58 AM

Fetcher[
/* dvpct - percentage dollar volume increased(+)/decreased(-) */

set{dv1, close 1 day ago * volume 1 day ago }
set{dv, close * volume }
set{netdvchg, dv - dv1}
set{dvpc, netdvchg / dv1 }
set{dvpct, dvpc * 100}

/* valchg - percentage value increased(+)/decreased(-) */

set{netchg, close - close 1 day ago}
set{CCC, netchg / close 1 day ago}
set{VVV, volume / volume 1 day ago}
set{CCCVVV, CCC * VVV}
set{valchg, CCCVVV * 100 }


add column dvpct
add column valchg

sort column 6 descending
]



LOCKWHIZ, I don't know if you have seen the above display filter or not.

The filter displays the changes in DOLLAR VOLUME and VALUE by percent.

Perhaps it may be of some help.





yepher
353 posts
msg #49287
Ignore yepher
1/15/2007 10:39:42 PM

Lockwhiz,

Thanks for the explanation. I am not sure I agree with your assumptions, like trading $1000 trades, but I do appreciate what you are trying to glean from the data points.

My suggestion would be you should use "Typical Value" instead of average price for your calculation. I believe that would tend to give you a little more accurate view of what was more likely spent for those shares.

Also, I think it would be more accurate to do a day by day multiplication of typical value and volume and average those values.

I hope that helps,
-- Yepher




StockFetcher Forums · Filter Exchange · The “Volume is greater then …” is severely flawed<< >>Post Follow-up

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