Hi,

I trade a strategy quite similar to Dan Zanger. I was thus rather interested to hear esiginal has come out with this add on:

http://www.esignal.com/partners/add-on-formula-studies/chartpattern.aspx?tc=

I just wondering if it is possible to recreate this or something similar in TC2000? I know this is a proprietary product, but any chance of getting to something similar?

thank you very much.

More info can be found here:

http://stocktwits.com/DanZanger/message/38855051

video: https://www.youtube.com/watch?v=iSQ1GSCYt3I

Thank you very much! :)

The Ratio(%) column looks like it might be very similar to Volume Buzz (well Volume Buzz + 100 and probably for a different moving average period).

I can't think of a way to implement the rest of it using formulas in TC2000.

Volume Buzz readings at 0 are normal volume, positive values are above normal and negative values are below normal.  A reading of +250 right now at 10:48am ET means the stock is trading 2.5 times the volume it normally trades at this time of day.

I think it is basically the same concept as Volume Buzz for the watchlist column except that it uses a 20-day average of volume.

For the indicator itself, i've spent considerable time creating this for multiple different time frames. I'm still in an experimentation phase and making some final decisions about how to implement it. It's not exactly the same as the screenshots I have seen of eSignal's implementation but it is close and very useful.

There are a couple of different ways to implement this.

1) Average all volume for the last 20 days and then divide by the number of periods in 20 days for the specified time frame. So, for example there are 260 x 30 min periods in 20 days. So divide AVGV20 and compare to the current periods volume.

2) Use time slicing to compare a 20 day average of only the slices for the current time of day. Example: you are using a 30 minute chart and it is currently 1:15 pm. Take an average of all of the 1 - 1:30 pm periods from the last 20 days and compare to the current time period.

3) Use a weighted average between the two previous methods. I've tried a 1:1 weighting and a 3:2 weighting.

Each Individual time slice is then compared to a scale to determine if the volume is Extreme, High, Average, Light or Dry-Up.

I use the following color coding to display the indicator:

Extreme: VR % > 200  PINK

High: VR % >120 and <200  RED

Average: VR % >80 and <200

Light: VR % >60 and <80

Dry-Up: VR % < 60

There is also a line indicator that is an average of the Volume Ratio number. Anything from a 5-period front weighted to 10-period exponential can work.

I'm somewhat hesitant to share the specific at this time as I am still working with it and trying to make a final decision on which formulas to use. There formulas are different for each time period and currently I have 5min, 15min, 30min, 1 hr, 2hr, 4hr, and daily templates set up. I also have multiple different versions of the indicator with different data overlayed over the colored bars.

If there is additional interest I can share some screenshots and explain how I created this.

One of the challenges I ran into is that Worden only provides 500 data periods for each chart so it  is not possible to retrieve 20-days worth of data for 15min and 5min charts.

This should read:

Extreme: VR % > 200  PINK

High: VR % >120 and <200  RED

Average: VR % >80 and <200  ORANGE

Light: VR % >60 and <80  LIGHT GRAY

Dry-Up: VR % < 60  GRAY

The line indicator i mentioned above is what eSignal calls "Rate".   I've gotten pretty  close to the screenshots I have seen of 60-minute charts by  using the time slice method and applying a 10-period EMA to it.

In addition, I create a detailed Watchlist Column layout that shows the volume ratio for different time frames. Similar to Volume Buzz, you can narrow in on a specific time frame and use the Auto-Resort function to keep the column updated.

Some of the small time frames would not allow a short Refresh Rate to be selected in the Column Set settings. However, the Auto Re-sort function will also refresh the column each time so if you set this to 15 seconds as an example you can get down to a 15 second refresh rate.

This work great. As an example, if it is 2:16 pm and you want to see what is moving now you can sort the 1 Hr VR column and it will show you which stocks are getting volume based on the last 16 minutes of data (now!) and compared to the volume for only that time of day over the last 20-days.

Here is an example showing stocks that recieved the highest volume in the last hour of trading today on a comparative time-sliced basis. You can see this is very different from Vol Buzz  in that you can narrow in on a specific time frame (real-time). The check boxes show issues that are 120% or more of average volume for that time of day. Over 120% is considered "High" volume. Over 200% is "Extreme".

Here is a screenshot of one version of the indicator. Volume is overlayed in black. They yellow line is 10 wma of Volume Ratio, and the blue dots represent price so that you can easily look for congruence and divergence with the Volume Ratio line right there in the indicator.

I forgot to mention that the previous screenshot is a 30-minute chart. Google.

I was somewhat surprised to see that there was no additional interest or discussion on this topic as it is a very useful concept overall. It is basically taking Volume Buzz and surgically making it vastly better and available across multiple time frames.

I will work on some additional posts to outline the formulas that can be used to implement this on different time frames. It is difficult on short time frames due to the limited look back period that TC2000 provides.

Again, the concept is to show a comparitive volume to the exact same time of day (time slice) averaged over the last 20 days. In addition to the comparative difference a color coding is implement to quickly highlight. Extreme, high, average, light and dry-up volume.

Hi Telework:

I am tatally interested in the work you have done! I have been using volume buzz as a replacement for the Zanger Volume Ratio indicator. It works to some extent but not sensitive enough.

Can you share your formula with me? I may be able to contribute something back. (I am a professonal programmer, though not for PCF).

Thanks,

- Mark

I'm new to this forum (about 2 weeks) but I already see a huge value of it.  I already see huge contributors like you Telework, Bruce and of course others. I highly appreciated what you post, I hope one day to repay as well with my own contributions.    

P.S. this program is excellent, it takes about few minutes to get info from it while it would take days with others.  

Hello Telework

I am impressed with the work you have done here in regards to the zanger indicator. Would you mind sharing your templates with the formulas?

Please let me know what's on your mind

Regards