Administration
Joined: 10/7/2004
Posts: 31
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Here is a copy of an email recently received from a subscriber. I have included my response in this thread.
Don,
The CD on "Interpreting Time Segmented Volume (TSV)," that I purchased some years ago considered that TSV values above the zero line were possible buying opportunities and TSV values below the zero line were potential selling opportunities. However, recent Worden Notes that I have looked at have been using a moving average (MA) with TSV.
I am trying to find out more about the use of an MA with TSV, and I am hoping that someone can direct me to an appropriate Worden Note, or to an approximate date on which an MA with TSV was first used so that I can search the archived Worden Notes.
Thanks,
Gerry
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Gerry,
I produced the explanatory CD-ROM video you are referring to and while both my father and I look at our proprietary technical indicators in a similar fashion, our approaches certainly vary as do our general conclusions on occasion.
When constructing my indicator templates, I have always (for many years) displayed a moving average of TSV overlaid on my actual TSV. I do this for two primary reasons.
First of all, I always like to see the more smoothed measure of TSV (the moving average) and how it relates to the zero-line. I like to see not only where the moving average is at the current time, but where it has been (positive or negative) over the history of my chart. And how the movement of the TSV moving average (above or below the zero-line) relates to the movement in price.
Secondly, I like to see how the TSV itself relates to its own moving average. Is TSV above or below its moving average? How has TSV responded to various price swings? Has TSV failed to move up through its moving average, as the result of a rally in price? Has TSV successfully held at or above its moving average, as a result of a pullback in price? How these two indicator lines inter-relate offers one more way to find clues regarding future price direction.
I appreciate your email and feel there are probably others who might benefit from my response. Therefore, I will post our exchange in the "Stock and Market Talk" forum at www.Worden.com. I hope my explanation provides you additional understanding on the subject of interpreting our TSV. Thanks again.
Best regards,
Peter F. Worden
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