This indicator defines the impact of volume on the volume-weighted moving average, emphasizing trends with greater volume.
What determines a security’s value? Price is the agreement to exchange despite the possible disagreement in value. Price is the conviction, emotion, and volition of investors. It is not a constant but is influenced by information, opinions, and emotions over time. Volume represents this degree of conviction and is the embodiment of information and opinions flowing through investor channels. It is the asymmetry between the volume being forced through supply (offers) and demand (bids) that facilitates price change. Quantifying the extent of asymmetry between price trends and the corresponding volume flows is a primary objective of volume analysis. Volume analysis research reveals that volume often leads price but may also be used to confirm the present price trend.
Trend thrust indicator
The trend thrust indicator (TTI), an enhanced version of the volume-weighted moving average convergence/divergence (VW-Macd) indicator, was introduced in Buff Pelz Dormeier's book 'Investing With Volume Analysis'. The TTI uses a volume multiplier in unique ways to exaggerate the impact of volume on volume-weighted moving averages. Like the VW-Macd, the TTI uses volume-weighted moving averages as opposed to exponential moving averages. Volume-weighted averages weigh closing prices proportionally to the volume traded during each time period, so the TTI gives greater emphasis to those price trends with greater volume and less emphasis to time periods with lighter volume. In the February 2001 issue of Stocks & Commodities, I showed that volume-weighted moving averages (Buff averages, or Vwmas) improve responsiveness while increasing reliability of simple moving averages.
Like the Macd and VW-Macd, the TTI calculates a spread by subtracting the short (fast) average from the long (slow) average. This spread combined with a volume multiplier creates the Buff spread
Hi,
Actually, I don't use it anymore, but I believe it was 'Volume Spread for VSA'
Now I'm using a map composed with axes of TTI and VPCI indicators
TTI> 0 and VPCI> 0 -> Hope
TTI> 0 and VPCI <0 -> Greed
TTI <0 and VPCI> 0 -> Panic
TTI <0 and VPCI <0 -> Fear
arj00001
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@Rafka, Kindly elaborate where can I find this map?
Rafka
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@arj00001, Buff Pelz Dormeier 'Investing with Volume Analysis' Chapter 21
MSTRKRFT
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@Rafka Hello, I love your strategy and indicators. What is your current setup for trading? Would you be willing to share your current work if possible? I have zero scripting knowledge. Thanks!
Rafka
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@MSTRKRFT, I try to diversify companies in all markets. Currently, due to rising inflation around the world, I am interested in raw materials companies with solid foundations. TTI + VPCI answers the question of when to buy or sell company shares.