Indicators: Range_Volume_Ratio

[Automated-Trading]

Range_Volume_Ratio:

Indicator of candlestick size / tick volume ratios.

Author: Scriptor

[I Kai Wu]

Automated-Trading:

Range_Volume_Ratio:

Author: Scriptor

Hi,

Could you explain more what does this indicator measures? How do you interpret the signals? 

Thanks

[Riko Dewaner]

I-Kai Wu:

Hi,

Could you explain more what does this indicator measures? How do you interpret the signals? 

Thanks

i think it indicates net price change per tick. higher value means more volatile. if there are 2 diferent type of candles(bull or bear), if the bull have higher rate, than it's bullish.

it's important to note when, price nearing any support/resistance you set, and you want to know which is the most probable to happen next, and whether it is going to bounce, or break away from it.

i don't really know much about market, but i think if volatility favors the bull, it means bullish and vice versa

i found this method helps alot when identifying movement, accompanied with any support/resistance(MA, fibonacci, or anything you use that may go along), RSI, and stochastic osc. this will help to confirm.

so don't use this alone.

[Riko Dewaner]

btw, i find it that most of the time there's one or more trade with very small volume makes it not visible on the indicator. i have a suggestion, which i have tried and it works, since this indicator does not rely on numerical accuracy, which one is more than which is enough, i change how the indicator value calculated. becaus there is a very big range of value. so i log10() the value to decrease the range.

it becomes

if((open[i]-close[i])==0||(high[i]-low[i])==0)
      {
      BufferRVR[i]=EMPTY_VALUE;
      }
      else
      {
      BufferRVR[i]=(tick_volume[i]!=0 ? (InpType==TYPE_OC ? log10(1/(fabs(open[i]-close[i])/(tick_volume[i]*Point()))) : log10(1/((high[i]-low[i])) / (tick_volume[i]*Point()))) : 0);/**/
      }

it's a quite nice indicator. actually i've been thinking of writing something like this. since i am really new to mql, that's the only think i can do now. if anybody have a better suggestion, i'd be very very grateful.

now the only problem is the indicator's value is to small to be shown by indicator. i don't know how to fix that yet. i'll try to do something about. ^_^