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First of all, I love trying to program new formulas. Tonight I was reading "The Phantom's Gift" and there was an indicator suggested by someone named David Palmer that I would like to try out, but I don't know how to calculate "highest and lowest volumes" from past days to plug into a formula. I am including his script here and would appreciate help from anyone.
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David Palmer wrote:
After reading the last posts, I attempted to build an indicator that would show me current volume relative to recent history. What I came up with was current volume divided by 45-day highest volume minus 45-day lowest volume times 100 to yield a percentage of range. I then averaged the percent volume over 5 days to smooth it and better see a trend.
Then, using Phantom's 1/3 theory, I put alerts at 67% and 33%. Tell me if I get out on a limb here. This could almost be used as a confidence indicator for the price-discovery process. Anything in the upper third of the range could be considered "correct" price discovery, and anything in the lower third would definitely be suspect. Nothing special about the exact numbers used.
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Thanks in advance.
EZ
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David Palmer wrote:
After reading the last posts, I attempted to build an indicator that would show me current volume relative to recent history. What I came up with was current volume divided by 45-day highest volume minus 45-day lowest volume times 100 to yield a percentage of range. I then averaged the percent volume over 5 days to smooth it and better see a trend.
Then, using Phantom's 1/3 theory, I put alerts at 67% and 33%. Tell me if I get out on a limb here. This could almost be used as a confidence indicator for the price-discovery process. Anything in the upper third of the range could be considered "correct" price discovery, and anything in the lower third would definitely be suspect. Nothing special about the exact numbers used.
********************
Thanks in advance.
EZ