Integrated VSA style Indicator

Discussion in 'Technical Analysis' started by Rusty99, Apr 16, 2009.

  1. Rusty99


    I have been developing an integrated indicator based on VSA concepts.
    The indicator combines three parameters

    Position of the close on the bar as a percentage of the range
    Rate of change of volume (%)
    Rate of change the range (high-low)(%)

    The parameters are scale and added, thus far.

    This indicator is aimed at develping a screener tool to pick stocks for closer scrutiny. (see VSAtot in the chart). It would be used with other indicators and combined with other signals for the screener (price trend).

    Given its combining three elements the signals are going to be mixed and require scrutiny. The idea is to find find stocks for closer examination. Currently the screener simply looks for an upswing in VSAtot in the last 3 days and a price surge.

    I would be interested in any similar ideas for this approach.

  2. For those who don't know:

    VSA = Volume Spread Analysis


    Try to segement your analysis into two parts:

    1) Identifying the trend, and
    2) Spotting increasing volume as price action moves in the same direction as the trend


    That should make your analytical approach:

    1) much more simple,
    2) and faster
  3. Rusty99


    Thanks for the feedback.

    There is no problem with the speed nor the complexity.

    Having a simple addition of the three components makes it easy to see why the indicator score has changed when you look at the detailed chart.