Registered User
Joined: 3/21/2006
Posts: 4,308
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I started this new thread because of the distorted view of the original. I hope that you do not mind..
Any way I think that I am making some progress on interpreting the VPCI, and I wanted to share my findings with you. I am posting a chart so that you will get a visual as well as a technical view.
On the VPCI I am using a 30 day sma for smoothing. Notice that in early March the indicator crosses over the 30 day sma along with crossing over the zero line, but price is still trending down. That is because it is the nature of the indicator to measure the strength of the trend based on Volume vs Price. The yellow lines highlight the areas that I am refering to. Price is moving down on very low volume which is an indication that the bears are not very convinced, or not in complete control, Indicating a weak trend and short lived. So the time to buy would be in late March when the indicator starts to move higher (along with price) on convincing buying pressure and strong volume.
The opposite effect happens in early to mid April which I highlighted with the red lines. You can see that price continues up as the indicator is turning down. That is an indication that the trend is running out of steam, and will not last much longer. This is also a product of diminishing volume.
Any way here is the chart for you to look at. Let me know if you have discovered any thing else concerning the VPCI.
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Registered User
Joined: 3/21/2006
Posts: 4,308
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Registered User
Joined: 3/21/2006
Posts: 4,308
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I also switched over to Platinum so I can test a few theories out on some intra-day charts. I will swich back to Gold soon.
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 Gold Customer
Joined: 11/11/2006
Posts: 359
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Tom: Good work.
I am still futzing around with the indicator. Pasting the formula in the window gives me an indicator that looks quite different than yours, although it seems to be the proper one. The three day low in mid March gives me a large upward spike, quite a bit higher than the spike in early April. I also get a larger spike on Mar 8. I use a setting for smoothing average in the indicator box of "1" as it seems you do. Options are few, with "Simple" or "Exponential" being about it. They both look remarkedly the same.
The large inverted hammer on Mar 26 puts me well over the "0" line and the 30 MA.
Appreciate your efforts on this. Will continue working to solve this irritating quandries.
Mammon
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Gold Customer
Joined: 11/11/2006
Posts: 359
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Pretty decent chart analysis and commentary on your part, by the way.
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Registered User
Joined: 3/21/2006
Posts: 4,308
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((C * V + C1 * V1 + C2 * V2 + C3 * V3 + C4 * V4 + C5 * V5 + C6 * V6 + C7 * V7 + C8 * V8 + C9 * V9 + C10 * V10 + C11 * V11 + C12 * V12 + C13 * V13 + C14 * V14 + C15 * V15 + C16 * V16 + C17 * V17 + C18 * V18 + C19 * V19) / (AVGV20 * 20) - AVGC20) * ((C * V + C1 * V1 + C2 * V2 + C3 * V3 + C4 * V4) / (AVGV5 * 5) / AVGC5) * (AVGV5 / AVGV20)
This is the original version that Diceman put together. Indicator - Custom - Indicator. Use the zero center line feature.
Just add a 30 day Moving average. The more you zoom into it the better it looks...
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Registered User
Joined: 3/21/2006
Posts: 4,308
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Now I have diss-jointed the thread. I have to be carfull of those long
Formulas. Bruce_L is there any way to fix this...
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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tommy21,
I put spaces in the formula so it will wrap (I did this in Tommy21/VCPI as well).
The easiest way to add these spaces is to update your Personal Criteria Formulas including the PCF you wish to re-format. It will automatically format the formula for you. You can then copy it from TeleChart.
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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Registered User
Joined: 3/21/2006
Posts: 4,308
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Thank you Bruce.
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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tommy21,
You're welcome.
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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Gold Customer
Joined: 11/11/2006
Posts: 359
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BINGO!!!
That did it! Re-entered the formula you posted and its exactly like yours. Looking good. Stands tall like a Georgia pine!!
Thank you again.
Mammon
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Registered User
Joined: 7/18/2005
Posts: 156
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tommy21
How'd you do the lines in the middle and bottom windows?
pfranka
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Registered User
Joined: 3/21/2006
Posts: 4,308
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Pfranka, I used the Paint program to edit the chart. You can also use Excel spreadsheets.
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Registered User
Joined: 7/18/2005
Posts: 156
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Thank you!
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Registered User
Joined: 9/22/2005
Posts: 849
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Would someone check and see if I have it right,
In the top window I have
sma30
and
(C*V+C1*V1+C2*V2+C3*V3+C4*V4+C5*V5+C6*V6+C7*V7+C8*V8+C9*V9)/(AVGV10*10))
using price scale.
In the middle window I have
((C * V + C1 * V1 + C2 * V2 + C3 * V3 + C4 * V4 + C5 * V5 + C6 * V6 + C7 * V7 + C8 * V8 + C9 * V9 + C10 * V10 + C11 * V11 + C12 * V12 + C13 * V13 + C14 * V14 + C15 * V15 + C16 * V16 + C17 * V17 + C18 * V18 + C19 * V19) / (AVGV20 * 20) - AVGC20) * ((C * V + C1 * V1 + C2 * V2 + C3 * V3 + C4 * V4) / (AVGV5 * 5) / AVGC5) * (AVGV5 / AVGV20)
using center line zero.
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Registered User
Joined: 1/28/2005
Posts: 6,049
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The 30 SMA is applied to the indicator with
center zero-line checked.(the one you have in the
middle window)
(click on it and use "add indicator")
(at least that's how tommy 21 has set it up)
-----------------------------------------
Is what you have in the top correct?
It would all depend on what you are trying to
see.
You have a 10 bar VWMA and a 30 bar
simple MA.
Thanks
diceman
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Registered User
Joined: 9/22/2005
Posts: 849
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Thanks, Diceman.
This is an interesting indicator, but I need some clariacatiob.
I'm not sure just what I am looking at.
Am I tryong to compare apples with oranges with the 30 bar sma and the 10 bar VWMA in the top window?
My time frame of interest is relatively short term, days to weeks.
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Registered User
Joined: 1/28/2005
Posts: 6,049
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See here how the indicator is created:
http://www.worden.com/training/default.aspx?g=posts&t=23271
(realize there is an error in my first post that is cleared
up in my second)
----------------------------------------------------------------------
The core of the indicator is the
LT VWMA - LT SMA
(the idea is the volume weighted one will out perform
or under perform based on volume)
-----------------------------------------------------------------------
ST VWMA vs. ST SMA and ST avg vol vs. LT avg volume
create ratios that amplify or attenuate the "core" indicators
movement.
Thanks
diceman
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Registered User
Joined: 9/22/2005
Posts: 849
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Thanks, that helps. I'll go back and review the earlier discussion.
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Registered User
Joined: 9/22/2005
Posts: 849
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Diceman, Bruce set the indicator up as a PCF with an upward zero crossing as follows
((C * V + C1 * V1 + C2 * V2 + C3 * V3 + C4 * V4 + C5 * V5 + C6 * V6 + C7 * V7 + C8 * V8 + C9 * V9 + C10 * V10 + C11 * V11 + C12 * V12 + C13 * V13 + C14 * V14 + C15 * V15 + C16 * V16 + C17 * V17 + C18 * V18 + C19 * V19) / (AVGV20 * 20) - AVGC20) * ((C * V + C1 * V1 + C2 * V2 + C3 * V3 + C4 * V4) / (AVGV5 * 5) / AVGC5) * (AVGV5 / AVGV20) > 0 AND ((C1 * V1 + C2 * V2 + C3 * V3 + C4 * V4 + C5 * V5 + C6 * V6 + C7 * V7 + C8 * V8 + C9 * V9 + C10 * V10 + C11 * V11 + C12 * V12 + C13 * V13 + C14 * V14 + C15 * V15 + C16 * V16 + C17 * V17 + C18 * V18 + C19 * V19 + C20 * V20) / (AVGV20.1 * 20) - AVGC20.1) * ((C1 * V1 + C2 * V2 + C3 * V3 + C4 * V4 + C5 * V5) / (AVGV5.1 * 5) / AVGC5.1) * (AVGV5.1 / AVGV20.1) <= 0
I put it into an PCF and scanned my list of one to ten dollar stocks (830). It returned 24 hits.
Now to follow those stocks for a few days and see how they do.
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Registered User
Joined: 3/21/2006
Posts: 4,308
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Mammon, I like ENER here. The VPCI is about to cross the 30 day sma and TSV 18 is just crossing the zero line (Scottnlenna might like that). I also just like this pattern. Stochastics and CCI are showing a good pattern too.
On the TCNET live chat I ran into Sharkattak, he says that he will come pay us all a visit. They are having fun with the VPCI over there as well I guess that they got it from the ask a trainer section. Nice bunch over there, by the way I am still Apsll on the chat rooms from what I gather there is no way I can fix that.
Let me know what you think about ENER...
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Gold Customer
Joined: 11/11/2006
Posts: 359
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Tom:
Looks promising on several fronts. The Trifecta is fixing to bloom, Tobydads procedure is about ready to pop and MACD-H just went positive. DICEMANS CYCLE is up to "O" and its industry chart has been trending up for most of the month. VPCI, as you say, looks good. I have mixed feelings about this indicator and have not quite figured it out yet, but I have noticed that it will signal a change sometimes a couple of days in advance. I don't wholly trust it, but I am at the point where I don't ignore it either. Of note, it seems to indicate that MTZ may have run its course on the 27th. Trending up on decreasing volume with today being a negative. Monday, I may jump ship if it starts to take water. TEN is another one where VPCI is straying from the path that price has beaten.
Good about Sharkattack. I am sorry that so many of the older posters are no longer here, such as HNC. We are fortunate that there are still a few of you around,HH,D'man,Tobydad, BigBlock,et.al. (Now I've left someone out...)
I'll watch ENER a while.
Mammon
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Registered User
Joined: 3/21/2006
Posts: 4,308
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Mammon try this version of the indicator -
((C*V+C1*V1+C2*V2+C3*V3+C4*V4+C5*V5+C6*V6+C7*V7+C8*V8+ C9*V9)/(AVGV10*10)-AVGC10)*((C*V+C1*V1+C2*V2+C3*V3+C4*V4)/(AVGV5*5)/AVGC5)*(AVGV5/AVGV10)
It is a shorter time frame and will react quicker.
Mammon use zoom 7 and pick any stock, walk the indicator foward one day at a time while you look at volume and price and the indicator. If the indicator goes down when price goes up then look at volume and it will probably be going down or staying even. The indicator is supposed to conradict price at times (like a divergence) to show you that maybe the trend is weak and will not sustain itself. The opposit is true in a down trend. If you sort with this indicator to find stocks in a weak down trend then you can be there when the trend turns the other way. Wouldn't that be nice.
This indicator is for short term trading, not for long term. Give me a ticker symbol that you are not sure if you understand the indicator and I will help you to understand the little nuances.. I think that this is a relly really good indicator...
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Registered User
Joined: 9/13/2006
Posts: 143
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Tommy
Check the weekly chart of ENER, it looks like double top, though I am not really qualified to call this formation, i need your thought on that.Also w/ TOBYDAD set uo OBV is not over LR225. Thank you.
Moe
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Registered User
Joined: 3/21/2006
Posts: 4,308
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Moe, I see this more as a sideways trading pattern. There was a double top that formed from Jan-May 2006.
Veiw the LR255 on zoom 2. You will notice that when OBV is below the LR255 in every case price was also at the bottom of its formation. In some cases if you wait for price to break the LR255 you will miss some of the run. In September 2006 you would have been whipsawed out of the stock for a loss.
You are correct to seek out traders with differnt trading styles. We all have our favorite indicators that we use.
Tobydad
Hohandy
Diceman and myself all do things differently, but we are all successfull traders. What works for tobydad might not work for me and viceversa. The most important thing in trading is not your choice if indicators, but it is how you manage the trade, along with good money management.
I hope that I have been helpfull.
Good luck.
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Registered User
Joined: 9/13/2006
Posts: 143
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Very helpfull, thank you.
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Registered User
Joined: 4/18/2005
Posts: 4,090
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moakhavi
I agree with Tommy21. This looks more like a tripple bottom forming to me than a double top. Double tops dont generaly come after a decline (I guess they could)... this tends to be a sidewayse pattern. I think I see a tripple bottom forming... and intend to put my money where my mouth is on monday.
ENER is one of those "Warm Fuzzie" stocks for me... it was one of my first super proffitable trades. Also the current candle formation is what I know as a "springboard" (from 6/21 FWD) and I have a good track record with those. Ialso like all the downward whicks of late. Bears couldn't keep price lower.. so the next logical conclusion is that higher prices should soon follow.
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Registered User
Joined: 4/18/2005
Posts: 4,090
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What do you guys think of SIM with this indicator?
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Registered User
Joined: 12/31/2004
Posts: 382
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Tommy21 could you put your chart on
Platinum .when you do that anyone that like it can save it and can use it. this a thought ...
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Registered User
Joined: 3/21/2006
Posts: 4,308
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Scott, SIM had some good buying pressure in April and May but that has diminished (for now) OBV and Money stream reflect that along with BOP, and TSV going below the zero line. As far as VPCI there was a small contridiction (divergence) from 6/18 to 6/22 as highlighted in blue on the following chart, but I feel that it was resolved very quickly as highlighted in yellow. I would wait for this indicator to cross up over the 30 day sma before buying.
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Registered User
Joined: 3/21/2006
Posts: 4,308
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Raymond2168, I do not know at this time how to post charts onto TCNET live. I am only using Platinum service for a brief time to test some trading theories that I have for intraday charts.
I will soon switch back to the Gold service, Sorry..
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Registered User
Joined: 3/21/2006
Posts: 4,308
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By the way Raymond2168 on the TCNET live chat my user name is Apsll. I will be avalable over there on Monday morning..
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