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Belly Indicators

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jeex
87
jeex  

A strange thought, but maybe it has a value:

  • A candle stick shows the Low, the Hight, the Open and the Close rate during a period (let's say: a day).
  • If one single Weirdo trades way to high with with small volume, the High is set, but in fact means nothing.
  • Another Fool can set the Low on a strange rate.
  • The average of trades is made in between.
  • If however the Fool or the Weirdo were the first or last in that day to trade, they would even set the Open or Close.

Thus we see a candle with four specific values, but we don't know:

  • what point in that candle had the most of the trading volume
  • where was the least of the trading volume.

Or am i completely missing something and am i the Fool and the Weirdo?

Belly Candle I can imagine sort of a BellyCandle where you can also see where most of the trading volume took place.

Or is there a stick or indicator that does show this?

Ubzen
5390
Ubzen  

This cannot be considered a serious post :) Anyways, there's no way of telling. Volume is just tick count. Has nothing to-do with who's trading what ... nor when. Within one minute bars, tick count cannot determine when. However if you're looking at something like hourly bar for example, then you can determine if the last half-hour had more tick volumes than the beginning.

jeex
87
jeex  
This cannot be considered a serious post :) 

Thanks a lot. Maybe i was not clear enough on what i meant:

I'm not interested in who trades when, but in where the trading takes place: i.e. the price range. Current candles do not reveal that info, while it would be valuable. From smaller time frames however that info can be calculated and the smallest timeframe is a tick.

It would be very valuable info if you can see on a day's candle or a H4 or H1 candle in what price range most of the trading took place.

Ubzen
5390
Ubzen  
jeex:

Thanks a lot. Maybe i was not clear enough on what i meant:

I'm not interested in who trades when, but in where the trading takes place: i.e. the price range. Current candles do not reveal that info, while it would be valuable. From smaller time frames however that info can be calculated and the smallest timeframe is a tick.

It would be very valuable info if you can see on a day's candle or a H4 or H1 candle in what price range most of the trading took place.

Tick is-not a time-frame its an event. Volume is displayed on the time_axis instead of the price_axis for a reason. Perhaps I'm not explaining this good enough. Period_M1 is the smallest time_frame and we cannot distinguish which tick came at which value. Mt4 does-not save ticks. You could use the entire one minute price range (low -> high). But once you move to higher timeframe, this information will be masked because there are other m1 bars within the hour which may share the same price.
jeex
87
jeex  

We are getting there.

Example:

  • 1 minute timeframe, EURUSD
  • Minute 1: price range between (open) 1.3330 and 1.3333: volume: 10 (it's an example)
  • Minute 2: price range between 1.3333 and 1.3335: volume: 30
  • minute 3; price range between 1.3333 and 1.3336: volume:25
  • minute 4; price range between 1.3333 and 1.3335: volume:25
  • minute 5: price range between 1.3325 and 1.3333: volume 5

Now where is the volume mass in the M5 candle? It Opened at 1.3330 and closed at 1.3328, but most of the volume occurred between 1.3333 and 1.3336. However we see a doji like candle with a small body and a wick up that actualy contains most of the volume of that candle.

From the volume of the smaller or even smallest timeframe we can calculate the belly of the candle stick. Or am i still misunderstanding the whole concept op volume? My craft is programming, not trading (although i now do have a home made robot making money for me).

Please comment.

Simon Gniadkowski
Moderator
18021
Simon Gniadkowski  
jeex:


Now where is the volume mass in the M5 candle?

In MT4 we don't have access to Volume data . . . so your question cannot be answered.
jeex
87
jeex  
Are you telling me that the red bars in the bottom of this screen shot are not accessable in an indicator or EA?
Ubzen
5390
Ubzen  
jeex:

We are getting there.

Example:

  • 1 minute timeframe, EURUSD
  • Minute 1: price range between (open) 1.3330 and 1.3333: volume: 10 (it's an example)
  • Minute 2: price range between 1.3333 and 1.3335: volume: 30
  • minute 3; price range between 1.3333 and 1.3336: volume:25
  • minute 4; price range between 1.3333 and 1.3335: volume:25
  • minute 5: price range between 1.3325 and 1.3333: volume 5

Now where is the volume mass in the M5 candle? It Opened at 1.3330 and closed at 1.3328, but most of the volume occurred between 1.3333 and 1.3336. However we see a doji like candle with a small body and a wick up that actualy contains most of the volume of that candle.

From the volume of the smaller or even smallest timeframe we can calculate the belly of the candle stick. Or am i still misunderstanding the whole concept op volume? My craft is programming, not trading (although i now do have a home made robot making money for me).

Please comment.

Yea, I have a question. How do you get a candle || bar || whatever to draw a belly?

How does information provided like this:

__1m

_____2m

_________3m

____________4m

________5m

Work to be much better than information already provided like this?

|

| | |

| | | |

| | | | |

| | | | |

1m 2m 3m 4m 5m

Added: it screwed up my formating ... top looked like a belly and bottom figure looked like volumes :)

Simon Gniadkowski
Moderator
18021
Simon Gniadkowski  
jeex:
Are you telling me that the red bars in the bottom of this screen shot are not accessable in an indicator or EA?

Yes they are, but they are not Volume they are Tick Count.

You have already been told this, perhaps you missed the post . . .

ubzen:

This cannot be considered a serious post :) Anyways, there's no way of telling. Volume is just tick count. Has nothing to-do with who's trading what ... nor when. Within one minute bars, tick count cannot determine when. However if you're looking at something like hourly bar for example, then you can determine if the last half-hour had more tick volumes than the beginning.

jeex
87
jeex  

Now you are too fast for me. I was still considering the concept.

My EA relies on candle behavior and not on math-indicators. So i try to get as much info from the candles as possible in order to analyze their behavior. And this bit i was missing. Maybe we've just invented a new tasty candle that will conquor the financial world and will carry our names for the next twohundred years ;-) The Jeex-Ubzen candle... A historic moment.

Anyway, it must be in the form of an indicator to keep it simple.

Ubzen
5390
Ubzen  
jeex:The Jeex-Ubzen candle...
When you write the indicator, please post ... some people will be interested I'm sure :)
12
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