I am stuck with IB at the moment. Have considered DTN IQ and esignal, but want an API so that I can do my own indicators. VWAP, volume by price and rate of change of price change are my concerns. When that rate of change reaches zero, I know that there is an opportunity, however brief, however dangerous. Danger gets my heart started.
I gotcha. I do things like that with E-Signal. Code for a simple-minded VWAP is ten lines. But VWAP is worthless, why would you want to calculate that? And kindly explain to a math-challenged old fool why you think zero price velocity offers opportunity. In what time frame?
Well! There's a hole in the ground! Zero price velocity means that price has stopped changing; whether it was going up or down, it has stopped going! That's what those math guys call a turning point (a minimum/maximum?) . Imagine shooting an arrow at the sun: it goes up into the sky and at some point its velocity becomes zero. That is the point at which your arrow starts falling back to earth! VWAP may provide some SCT comfort: If I short at 1450 and the price goes to 1452 but VWAP is 1449, I can delude myself into thinking that everything is alright.
When you code and test it, stay open to the possibility that what may be significant is a dead band of +/- velocity around zero velocity. But I am stepping on Joe Doaks' toes, he will have me over a barrel (he likes that, the bugger).
optionamateur0.7, you must do the work! Read between the lines. Trading wisdom is being dispensed here. This thread is not a street; the particpants aren't cars.
225, you just gave away some personal information using the word "hysteresis". And spelling it correctly.
Opie, if you were reading carefully, you learned today: a new chart pattern, Escalator to Nowhere that VWAP is useless, utterly without merit and that by implication, since we didn't discuss it when we talked velocity, acceleration is a useless measure of price. Edit: and an extension of the Rule of Ten to the Rule of Fifteen.
Voila! In another front page thread, IB claims they've found a server problem that causes disconnects!