Effective Volume Indicator - monitoring the large players
...
greatworth
There are a couple of errors in that code.
iCustom(NULL, NULL, "EVIndicatorpart2v1",0,0) returns a value of the current bar for EVIndicatorpart2v1 (it is a future value for past bars and that makes it a repainting indicator). Also, there is no need whatsoever to make 2 separate indicators (one is quite enough for that task). Removed some other parts of the code that were not needed at all. This one works as it should (as they should mathematically)
Dear Mladen
thanks for this - very kind. Very neat and simplified.
I have tested it and looked at the code, and as far as I can see it is not adding the previous bars together to get a smoothed line as per my previous post.
Many thanks
...
greatworth
If you change the iCustom(NULL, NULL, "EVIndicatorpart2v1",0,0) in your version to iCustom(NULL, NULL, "EVIndicatorpart2v1",0,current) and add zero division check you are going to get 2 things : completely the same values as in the version I posted and a non-repainting indicator. As I explained, having 0 there as a parameter makes that a repainting indicator using future values in that part of calculation.
________________________________
There is no such thing as "adding the previous bars together to get a smoothed line" in your indicator. The "smoothness" was coming from repainting
all the best
dear mladen
I think I am not explaining myself very well here.
Whilst I think I now understand what you mean below, what I am trying to do is to sum all the previous values of this equation from a starting point some time before (it doesn't really matter when, but it needs to be fixed).
As a new value is calculated that new value will be added or subtracted from the sum to date and therefore the line will go up or down slightly depending upon the additional value calculated.
Does that make sense?
Once the effective volume is defined (as above), to calculate and show the large volume (i.e. those which are more likely to move the market), you take an average effective volume of the last x bars (as the effective volume should be calculated on minute bars regardless of the time frame, 60 minutes would make sense), and then only show those values (the values from the effective volume above) which are larger than the average. Again, each value needs to be added to the last from a fixed starting point, to show whether the large effective volume is going up or down.
With this you can follow the large players who are likely to have more of a clue than the smaller (retail) players. If the small effective volume (i.e. values below the average) are also included it is easy to see where the large players are diverging from the small players - this is often an indication of where the price is going to go.
is it possible to smooth this indicator
greatworth
There are a couple of errors in that code.
iCustom(NULL, NULL, "EVIndicatorpart2v1",0,0) returns a value of the current bar for EVIndicatorpart2v1 (it is a future value for past bars and that makes it a repainting indicator). Also, there is no need whatsoever to make 2 separate indicators (one is quite enough for that task). Removed some other parts of the code that were not needed at all. This one works as it should (as they should mathematically)is it possible to smooth this indicator
Yes it can
Here is the simplest way to smooth it
As a matter of interest, what were you trying to do when smoothing this?
Also, has anybody out there, used this indicator with success?
Best wishes
Yes it can Here is the simplest way to smooth it
As a matter of interest, what were you trying to do when smoothing this?
Also, has anybody out there, used this indicator with success?
Best wishesgreatworth
Please read the post by drunkpips in which he asked if it can be smoothed and that was the answer to his question. It is a version that is smoothing the result (so yes, it can be smoothed). To avoid smoothing set the Smooth parameter to 1. That is all
All the best
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
You agree to website policy and terms of use
The mathematics behind this indicator that I am trying to put together is by Pascal Willaim, and more information can be found at Effectivevolume.com
I have put together two indicators (one goes inside the other as I had difficulties getting the whole equation to work in one row).
However, whilst these indicators work out the value of each minute, I can't work out how to change the indicator so that it adds each minute's value together in order to produce a smoother line. As each minute's value can be positive or negative this will allow us to see whether effective volume is going up or down.
In excel you would simply use the SUM function, but I can't find the equivalent mt4 command that allows you to add x values (i.e. previous minutes).
Once this is done, I will work on the next part which is to separate the larger from the smaller players.
I would be grateful if anybody can help me on this.
Indicators attached.
Many thanks