Indicators which rely on Price & Volume Action

[Chorlton]

Hi All,

Firstly, I'm not too sure whether this is the best bb to post my question but as it relates to Indicators I thought I'd post it here anyway.

As part of my strategy for trading UK Stocks, I currently rely on TA to choose suitable entry and exit points. I also pay very close attention to Price AND Volume (VSA) to help me to decide where a SP may go short-term.

I don't use many indicators (as I find most of them too complicated for their own good & basically a waste of time IMO) but however I do rely on a limited number of modified SMA's to help choose my entry / exit points together with Price & Volume (as mentioned above).

However, more recently I have discovered the "Accumulation / Distribution" line, which is apparently derived from both price action AND the associated volume and which seems to offer a good indication as to whether a trend will continue.
Initially, I like this indicator as it seems to visually & instantly identify the same thing as I would normally do (ie. by monitoring daily price & volume action).

Consequently, does anybody else use this indicator and if so, what tips or advice can anyone offer with regard to this indicator for the purpose of trading shares?

Also, for those who use TA to trade in this manner, can anyone recommend any other indicators (which rely on Price AND Volume) which have proved effective.

Thanks in Advance,

Chorlton

 

[Trader333]

...Also, for those who use TA to trade in this manner, can anyone recommend any other indicators (which rely on Price AND Volume) which have proved effective.

If you have followed any of Grey1's posts you will know that he has made great use of VWAP which is directly derived from price and volume.


Paul

 

[dcraig1]

Chaikin oscillator which is the MACD of accumulation/distribution is a bit interesting. Use much faster settings than standard MACD, and look for obvious divergences.

 

[Chorlton]

If you have followed any of Grey1's posts you will know that he has made great use of VWAP which is directly derived from price and volume.


Paul

Thanks Paul,

I've had a quick read up on VWAP but now I'm a bit confused as to how I can use it for my purposes - I currently swing trade UK stocks where I keep positions open from anything between a few days and a few weeks (depending on how well a stock is trending)

I will continue to read further posts which hopefully will make some more sense

Regards,

Chorlton

 

[Chorlton]

Chaikin oscillator which is the MACD of accumulation/distribution is a bit interesting. Use much faster settings than standard MACD, and look for obvious divergences.

Thanks for the reply.....

 

[rols]

Chaikin oscillator which is the MACD of accumulation/distribution is a bit interesting. Use much faster settings than standard MACD, and look for obvious divergences.

Set it to 21 on 1 min. charts and see what happens.....

 

[dbphoenix]

Chaikin oscillator which is the MACD of accumulation/distribution is a bit interesting. Use much faster settings than standard MACD, and look for obvious divergences.

I believe you're referring to Chaikin Money Flow, not the Chaikin Oscillator.

 

[Chorlton]

Set it to 21 on 1 min. charts and see what happens.....

Thanks for the reply. Unfortunately, I only have access to EOD data so am unable to use a 1min chart.

Is there any way that this can be adapted to suit a daily chart or will it only work using a 1min chart ? I assume a 1min chart is needed though so as to accurately calculate the VWAP?

Thanks,

Chorlton

 

[dcraig1]

I believe you're referring to Chaikin Money Flow, not the Chaikin Oscillator.

No,

Chaikin Oscillator:

http://www.equis.com/Customer/Resources/TAAZ/Default.aspx?p=41

Chaikin Money Flow:

http://www.incrediblecharts.com/technical/chaikin_money_flow.htm

 

[mr_cassandra]

I have found mfi (money flow index to be useful in short term trading, days to weeks)