Welcoming everyone to a simple Indicator. I have used the volume of a stock to establish how commited the market for that particular ticker is when it comes to a direction.
The idea behind the indicator is how much of commitment there is towards a move.
*** This indicator is non directional*** ie., It just measures the commitment behind a move.
Why is it important.
Let's say we have a uptrending stock with low commitment (pressure), the bounce on any pullback will not be able carry that any further. So the pressure on the Pullback could drop the stock below and add additional risk. Only for us to wish and think, we checked that previously.
Essentially, If a Trend is being established with a strong pressure (VOLUME BASED). It is more likely to continue.
How you would use this is upto you. But general ideas in Some of these snapshots.
Concluding -
The trend in combination with TPI - Stronger Trend.
In such stronger trends - A pullback (oppsing the trend) have higher probability to bounce.
NOTE - Experiement with the indicator and Trade at your own risk This is a tool, not a system.
Feedbacks are welcome and will be considered for improvement.
If you are using this, please share your success stories (or Failure stories). That motivates me to create more new indicators to share on TV and also help others.
mesuarez09
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@ucsgears, I will be using this, and I'll give feedback. Thank you!
idrisbengali
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Thank you...
jennysoft
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@idrisbengali,
pls can somebody help with Mt4 ext file. i'm new to forexand i don't know how to make the script and indicator. Thank you. my Email is jennyton25@yahoo.co.uk