Volume climaxes and trends

[darth trader]

I've long been a fan of volume climaxes and volume trends for giving good trading signals and in fact I found that this was a strong point for OmniTrader.

Nowadays though my preferred tool is Metastock and I'm a little frustrated at not having these signals available.

I plan to code up some queries but I don't feel happy with any of the definitions that easily come to mind.

eg. the volume peak doesn't necessarily have to coincide with the same day as the price reaches its extreme. (could be +/- a day).

Are there any views on how these volume signals might be defined?

 

[ChartMan]

I have found on many occaisions, a major volume spike confirms a true "bottom" and "top".
Thing is, how do they( the people buying or selling) get it so right?????

 

[darth trader]

maybe that's where fear and fundamentals meet?

are there any eds in aiq that you could post?

 

[ChartMan]

Darth I don't have any Volume based EDS.
As a start, you could bottom trawl, looking for a vol spike say minimum 2 times average volume over last 10 days, within last 2 days.
Bottom trawl over ,say, the last 6 months.
Hope this helps.

 

[darth trader]

I haven't yet decided how best to code a volume climax signal but here is an exploration filter for volume trends:

Ref(V,-2) > 2 * Ref(Mov(V,50,S),-3) AND
V > Ref(V,-1) AND
Ref(V,-1) > Ref(V,-2) AND
Ref(V,-2) > Ref(V,-3)

it checks for 3 consecutive days of increasing volume with first being at least twice normal volume (defined by a moving average).

Let me know if you find it useful.

 

[ChartMan]

I'll try it in AIQ with a couple of other bits and let you know if it looks good....

 

[darth trader]

Martin, I'll look forward to hearing from you.

This query seems to be able warn of impending volume climaxes as well.