| Welcome Guest, please sign in to participate in a discussion. | Search | Active Topics | |
Registered User
Joined: 10/18/2004
Posts: 90
|
In the TC2005 article, "Balance of Power, Time Segmented Volume and Money Stream," the followng comment is made, one that I do not understand.
"Now you can calculate a moving average of an aready smoothed TSV and use it in much the same way the MACD is used."
I understand the MACD to be the difference of a short MA and a long MA which is then compared to a third MA.
Does the above quote imply that one should use the difference of a short TSV and a long TSV which are then compared to a MA of a different period?
Thanks,
Lee
|
|
Worden Trainer
Joined: 10/1/2004
Posts: 4,308
|
Only the author would know for sure what was meant, and that was probably Don or Peter Worden. MACD simply plots the difference between two moving averages, so when the MACD line crosses zero, it means that there is zero difference between the two moving averages (ie. they are crossing). You can also apply a separate moving average to the MACD line to smooth it. When you plot MACD as a histogram, whenever MACD crosses its own moving average, the histogram switches from above zero to below zero, or vice versa. Perhaps the comment above was to indicate that you can plot a moving average of TSV and look for crossings, much the same as you do with MACD. Again, only the author would know for sure. You can email either Don or Peter Worden at support@worden.com, putting the name of the person you wish to contact in the subject line.
- Doug
Teaching Online!
|
|
Registered User
Joined: 10/18/2004
Posts: 90
|
Thanks
|
|
Registered User
Joined: 10/18/2004
Posts: 90
|
In attempting to find who wrote the above quote, as you suggested, I looked through the Help files and I found the quote under the description/definition of Time Segmented Volume. The more complete quiote follows:
"One of the new features of this indicator is the ability to calculate a moving average of another moving average. This addition has made TSV more effective and easier to use. Now you can calculate a moving average of an already smoothed TSV and use it much in the same way the MACD indicator is used. Positive and negative TSV crossovers are one more thing to consider when trying to form an opinion on a particular stock or market index."
Does this give you any ideas about my question?
Lee
|
|
Worden Trainer
Joined: 10/1/2004
Posts: 4,308
|
I still think it's referring to plotting a moving average of a smoothed TSV and watching for crossovers. Again, the author would have to clarify. Perhaps you might want to email Peter Worden as I suggested earlier. Even if he was not the author of that exact quote, he may be able to clarify.
I wouldn't get hung up on the quote. Watch the Peter Worden video on TSV (one year money back guarantee when you purchase it), and learn to interpret TSV. If you were to get some clarification of the statement in question, I honestly doubt that it would shed any light on how to use TSV. I've never run across the quote until today, and I have seen TSV (along with crossovers of its moving average) be used quite effectively in Peter Worden's analysis.
- Doug
Teaching Online!
|
|
Registered User
Joined: 10/18/2004
Posts: 90
|
Thanks, I do appreciate your patience!
Lee
|
|
Worden Trainer
Joined: 10/1/2004
Posts: 4,308
|
You're welcome. My pleasure!
- Doug
Teaching Online!
|
|
|
Guest-1 |