ok, I double checked with them and while the traditional charts currently don't divide the ticks between bars, and therefore can have volume >= to the volume level provided...the marketdelta footprint charts do provide constant volume bars see the below chart (you can see volume total at bottom): http://www.charthub.com/images/2007/04/19/Footprint__Delta_7.png In addition, (and this is a big reason of why I think IRT is so great) I talked to a developer and they are going to look into making the volume bars on traditional charts constant...so he told me I could expect that soon. I have used a lot of different charting packages and it is rare that I can talk to a developer and they will add/change things like that. P.S. I should mention that I don't really use constant volume bars and the developer posted that chart to show me that it works correctly.
Thanks for the clarification but I find using MD a distraction to the trading process. Since I'm the person that coined the term, introduced Volume Bars and the understanding for their usefulness to the industry, working with developers is an ongoing occurrence. I look for ways to simplify the trading process not turn it into an art form or something else to be interpreted.
Interesting, I will search the forum for your posts on ways to use constant volume bars. If there are other URLs where you have written on the subject I would definitely be interested if you can send me a PM. As I stated above, IRT told me they will be implementing them "correctly" on traditional charts since it was pointed out to them. This is typical in my dealings with them...when something is pointed out that should be corrected or can be improved upon they usually do it.
hey proflogic just fyi IRT developer emailed me and said they pretty much have the constant volume bars worked out on normal charts now. http://www.charthub.com/images/2007/04/20/VWAP So we should see that on next release. Pretty hard to beat that response time unless you do your own programming. I use mostly MP charts and enhancements/improvements on those charts have been very similar when I requested them (fast). Hands down they have the best MP charts out there right now. I guess since I'm not a programmer I really like the fact that I can get things done so quickly as a customer. The developers have a live chat session every week that customers can participate in.
Can you explain the mechanism behind that a bit more? I know a lot of people use "tape reading" where they look for large trades that hit the ask as sign of professional buying and large trades hitting the bid as evidence of professional selling. I personally think it's nonsense because as you say "smart money" will accumulate passively but I'm interested that these large trades are not all they seem.
Volume is still a LAGGING indicator. By the time you see the move, equal volume counteracts from the other direction. Candle charts do the same thing.
Volume IS a lagging indicator but Constant Price Volume Bar Charts offer a snap shot of the immediate direction and strength of price from its oscillations.
I get so tired of seeing people point out "lagging" indicators...bottom line...everything is a "lagging" indicator. You can look at current price action and current volume action and follow the hard right edge...you are looking at current or historical period...because that's all there is.