Effective Volume Indicator - seeing whether the large players are buying before the price rises - 5 minute job to finish?
zip file of explanation of the effective volume
zip file of explanation of the effective volume
You realize that volume in MT4 has absolutely nothing to do with depth of market. It's simply a count of the number of ticks in a bar.
Indeed.
The whole original question - with suppositions such as "whether the large players are buying" and "small players don't have a clue" - sounds as though it's prompted by some form of volume spread analysis (VSA). I'm not aware that this has worked since the 1970s. The last VSA document which someone gave me for comment contained a heady mix of simple factual inaccuracies plus things which haven't been true since the advent of electronic exchanges. With a coating of a huge implicit bias towards long-only equities. In fact, I've just done a quick search for the Pascal Willain mentioned above and, sure enough, his website says that his methods are about "Volume analysis for stock trading".
Indeed.
The whole original question - with suppositions such as "whether the large players are buying" and "small players don't have a clue" - sounds as though it's prompted by some form of volume spread analysis (VSA). I'm not aware that this has worked since the 1970s. The last VSA document which someone gave me for comment contained a heady mix of simple factual inaccuracies plus things which haven't been true since the advent of electronic exchanges. With a coating of a huge implicit bias towards long-only equities. In fact, I've just done a quick search for the Pascal Willain mentioned above and, sure enough, his website says that his methods are about "Volume analysis for stock trading".
I wonder if anybody could help. My colleague has tried to program up Pascal Willeim's effective volume indicator (from Alexander Eldar's 'Come into My Trading Room').
Basically what it does is to split the volume into first effective volume (if you look in the zip file on the next post this is explained, but basically the equation allows you to see the volume that is having an impact on the market), and then split between the large volume and the small volume.
The principal of the indicator is that it shows when large players are building up, whilst small players 'don't have a clue'. this could lead to an explosion in the price when the dam bursts.
Most of the work is done in the attached mq4 file (albeit with an average instead of the mean), but the large volume and small volume should be seperate lines that are rolling over a defined period of time. As this is FX, it will be different to the attached pdfs as there are not start and stop times in the market.
SO TO SUMMARISE, is there anybody who could make a small adjustment to this indicator to show the large and small lines according to a adjustable period. I am not a programmer, but from what I can see, only the adjustable period needs to be added in.
Just so you know, the reason why I want to use this indicator is, whilst it won't tell you which way the price is going to go, it may tell you when there is a large build up of buying or selling which hasn't yet been reflected in the price.
would be really grateful for any help and I would like to put this indicator out for public use.
I made some changes and think it works now. There are 2 indicators: EVIndicator which has all 3 styles, and EVonlyLarge which contains only the large players (because in EVIndicator it may not be clear enough, and also because the large players are what's interesting) and which requires EVIndicator to be in your indicators folder. Also, if you want a clearer view of the small or total players in EVIndicator, try replacing LV[i] = sum; with: LV[i] = sum / 100; or a different divider. The only blue line in the 2nd large-only indicator = The yellow line in the 1st indicator only clearer.
Here's the second one.
Oops, sorry! I mistakenly forgot to change the dependance of the 2nd indicator to the new EVIndicator. I'm reposting and it (EVonlyLarge) now works properly when EVIndicator is present in the indicators folder.
Oops, sorry! I mistakenly forgot to change the dependance of the 2nd indicator to the new EVIndicator. I'm reposting and it (EVonlyLarge) now works properly when EVIndicator is present in the indicators folder.
Hi nlenz, even with ( The EVindicator and EVonlyLarge_2 are both saved in the indicator folders), i tried the EVonlyLarge_2 ind on a M15 chart n, the line seem not to draw after a bar close i have to manually refresh the screen, may i know do you experience this?
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Basically what it does is to split the volume into first effective volume (if you look in the zip file on the next post this is explained, but basically the equation allows you to see the volume that is having an impact on the market), and then split between the large volume and the small volume.
The principal of the indicator is that it shows when large players are building up, whilst small players 'don't have a clue'. this could lead to an explosion in the price when the dam bursts.
Most of the work is done in the attached mq4 file (albeit with an average instead of the mean), but the large volume and small volume should be seperate lines that are rolling over a defined period of time. As this is FX, it will be different to the attached pdfs as there are not start and stop times in the market.
SO TO SUMMARISE, is there anybody who could make a small adjustment to this indicator to show the large and small lines according to a adjustable period. I am not a programmer, but from what I can see, only the adjustable period needs to be added in.
Just so you know, the reason why I want to use this indicator is, whilst it won't tell you which way the price is going to go, it may tell you when there is a large build up of buying or selling which hasn't yet been reflected in the price.
would be really grateful for any help and I would like to put this indicator out for public use.