Day Trading & Forex Forum

UrmaBlume

Using constant volume structures facilitates the presentation of a "Harmonic" of buying and selling because, from one bar to the next, the amount of the increase in buying volume is the exact amount of the decrease in selling volume and vice versa.

The harmonic is presented in the bottom section of the chart below. The red line and is a zero phase Jurik smoothed summation of selling and the blue is of buying. As the crosses change color a signal is given. In the graph below you can see that this change usually happen before a change in the direction of price.

This indicator has price as NO part of its calculation which is consistent with out experience which indicates that the best indicators of future price don't have price in any format as part of their calculation.