Tweet
Trade Volume Index
Hello Experts
Can someone please help develop the Trade Volume Index?
The requirements are as follows:
The TVI shows its predictive power when assessing a stock that is flat lining at a particular level._ How many times have you been watching a stock at a particular level and wonder whether it has the juice to get through a certain level._ The trade volume index will peel back the onion and show you what traders are doing._ For example, if you want to buy a stock on a break of $100, and it has been flat lining for 2 hours, you may hesitate on pulling the trigger due to the flatness in the market before the breakout._ However, if you see that the TVI has been rising over this 2-hour period, it is a sign that traders are accumulating the stock at the ask price, thus increasing the odds that the stock will have legs when it clears resistance.
How to Calculate the TVI
The trade volume index is calculated by using the following formula
MTV = Minimum Tick Value
Change = Price minus the extreme price since direction changed
If Change is greater than MTV, then Direction = Accumulate
If Change is less than MTV, then Direction = Distribute
If Change is less than or equal to MTV and Change is greater than or equal to MTV, then Direction = Last Direction
Lastly, we must calculate the TVI, which is simple once you know the Direction.
If Direction is Accumulate, then TVI = previous TVI + Volume
If Direction is Distribute, then TVI = previous TVI – Volume
If it already exist can you please let me know where I can get it
Cheers
Can someone please help develop the Trade Volume Index?
The requirements are as follows:
The TVI shows its predictive power when assessing a stock that is flat lining at a particular level._ How many times have you been watching a stock at a particular level and wonder whether it has the juice to get through a certain level._ The trade volume index will peel back the onion and show you what traders are doing._ For example, if you want to buy a stock on a break of $100, and it has been flat lining for 2 hours, you may hesitate on pulling the trigger due to the flatness in the market before the breakout._ However, if you see that the TVI has been rising over this 2-hour period, it is a sign that traders are accumulating the stock at the ask price, thus increasing the odds that the stock will have legs when it clears resistance.
How to Calculate the TVI
The trade volume index is calculated by using the following formula
MTV = Minimum Tick Value
Change = Price minus the extreme price since direction changed
If Change is greater than MTV, then Direction = Accumulate
If Change is less than MTV, then Direction = Distribute
If Change is less than or equal to MTV and Change is greater than or equal to MTV, then Direction = Last Direction
Lastly, we must calculate the TVI, which is simple once you know the Direction.
If Direction is Accumulate, then TVI = previous TVI + Volume
If Direction is Distribute, then TVI = previous TVI – Volume
If it already exist can you please let me know where I can get it
Cheers