Hi,
I would like to share with you indicator which I was able to create (I'm not a coder
)It’s based on other indicators and it’s basically just a sum of them. Indicators which were used : Volume, Accumulation Distribution, Money Flow Index, On Balance Volume.
During tests I found that values of this indicator can be up to millions, so I introduced VolDivisor – (b) in inputs window, to lower these huge numbers. Additional restriction is VolMaxLimit – (c) in inputs window, which deals with spikes caused by quotes errors.
UniqueNumber – (a) in inputs window, is used for arrows creation on main chart window; purpose - prevent conflicts with objects from other indicators. Arrows are shown when indicator value is [greater] or [smaller] then indicator both MA’s. Arrows will appear only when MA’s are visible.
At first I didn’t expect much but visual backtest show some interesting things.
In short we are looking for 3 situations :
- Very low value (marked on attached picture as – 1, 3, 5 )
- Spikes ( 2, 4 )
- Flat regions ( 6 )
In each situation price reacted quite nicely. Of course I didn’t discover anything new but this is much more than pure Volume shown on chart window.
Currently I’m trying to exploit this indicator info in Bob’s 10.4 strategy, ie. confirmation for countertrend trades, but it’s too soon to came with “bullet proof” plan.
Hope you like it, and it will be useful.
Best regards
nht
