As I read Brian Shannon’s book Technical Analysis Using Multiple Timeframes, I began trying different implementations of a Volumetric Trendline. The result is the study you see here. The user enters the desired period and the study will plot a trendline that represents the linear volume based trend for that period. The trendlines update in real time as price/volume action changes. I experimented with various periods to see what appeared most useful and ultimately settled for 20, 55, 110, and 220 period lines. These numbers are essentially arbitrary and I recommend you experiment and find what works best for you. Also pictured is the DeMark Pressure Ratio and a custom multiple timeframe study built for one of our members.
Volumetric Trendline
what interest me is the study below >_< any rough description on the yellow line and the green and red highlighted area?
It’s a multiple timeframe Stochastic Momentum Index. The Buy and sell zones correspond to all three timeframes being in agreement based on a user-defined threshold.
20, 50, 80 seems to be useful.
Where’s the download link?
its in the latest bundle
Awesome..is this for daytrading mainly? Anyone having superior results from this new indicator?