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Registered User
Joined: 3/1/2005
Posts: 31
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I enjoyed the Las Vegas Money Show and learned a lot. Thank you.
I have a few questions regarding the TSV and MS indicators. I've read all about them, watched Don's LV presentation and have watched them on my charts for the last year or so. I'm going to state the way I understand them and then ask for your comments and corrections. I may be way off, but that's why I'm asking.
The mixed term Accumulation/Distribution is a misnomer. it combines two seperate forces in conflict over price that most traders don't understand and therefore mix the terms and shy away from the channel. I think Accumulation is correctly describing a time when the price of a stock is basically flat BUT the majority (>50%) of the transaction are trading at the ASK indicating that the buyers were willing to pay the premium on the spread while Distribution describes the same pricing action BUT with the majority (>50%) of the transactions occuring at the BID indicating that the sellers were willing to pay the premium on the spread. This is important to understand and see and wonderful, if such information could be gained.
I see TSV as being a general indicator by the overall market as measured by both price and volume moving higher or lower as the general market's interest is higher or lower. The greater the interest, the greater the buying pressure, the higher the price and the more volume occurs all leading to a higher TSV.
I see the MS as the amount of specific trading at the Bid versus Ask indicating the strength of transactions toward Accumulation before a probable upward move or showing the weakness of transactions toward Distribution before a probable downward move.
I don't know how either formula actually works nor how to find Bid versus Ask transactions, but this is the closest I have been able to find.
How close am I to understanding the basis of these indicators? I hope others would like to gain a better understanding of them as I would.
Thank you,
Dr. Ken Rich
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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Neither indicator has access to the bid/ask prices so they cannot be a part of their calculations.
Read this and see if it helps:
Don Worden on the history of BOP and MoneyStream
- Craig
Here to Help!
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Registered User
Joined: 3/1/2005
Posts: 31
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Thanks, Craig,
I read the article through and found it not only interesting but very enlightening. I fiddle with indicators and write some of my own on the same basis as Don does. I have a fairly clear idea of what I am looking for and proceed to get it. The background and understanding Don gives is very helpful in understanding these indicators.
To EVERYONE ELSE - the article is long but well worth the time.
Dr. Ken Rich
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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I am glad you found value in it.
- Craig
Here to Help!
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