Volume Spread Analysis: How to Guide with AFL Code

Volume Spread Analysis is an attempt to predict the market direction. If you want to follow the footprints of the big players in the market, relying only on price action is not enough. You need to study the price and volume together to get a view of the whole picture. So basically, VSA is a study of the relationship between price and volume. This analysis pays attention to three things: Volume, the difference between high and close price (Range/Spread) and closing price in relation to Range.

Also Read: On Balance Volume (OBV) Indicator Excel Sheet

What is Volume Spread Analysis (VSA)?

Most of the traders in the world either trade based on fundamental analysis or technical analysis. Fundamental analysis involves speculating the market direction based on macro economic factors and financial data of companies. While technical analysis involves chart reading, quantitative indicators and Dow theory. However, there is a third method of predicting the market trend, through volume spread analysis. VSA involves predicting the moves of professional traders (or smart money) who are actually responsible for any significant movement in markets. This is done through studying the volume with respect to price.

The term volume spread analysis (VSA) was first conceived by veteran trader Tom Williams, who also popularized this concept among modern day traders. But the methodology behind VSA is based on the research by Richard Wyckoff and Jesse Livemore.

 

How to use Volume Spread Analysis?

Well, executing and mastering VSA is quite difficult. The interpretation of VSA varies with different traders. Only the constant market observation and years of practice can help you to trade well with VSA. How it works for different traders is something that needs to be studied well. But before moving further let us understand the two very basic concepts of VSA:

No Demand

No Demand

When the spread and volume of the current bar lowers in comparison to the previous bars (in spite of a higher close price), it means that market is showing No Demand. Actually, the No Demand on Up Bar is an indication that the smart money is not supportive and is not at all interested in higher prices of the stock. Buying and selling are only taking place from the weak money. No Demand bar is formed when all these three conditions are met:

  1. If the prices closes higher in comparison to previous bar.
  2. Volume is lower in comparison to the just two previous bars.
  3. If the Range is narrow.

No Selling Pressure

Volume Spread Analysis

It is just opposite of No Demand. If the spread and volume decreases and the market falls, this shows that the stock market is not interested in selling. So in all likelihood, the markets will not continue to fall. The No selling Pressure Bars are formed when all of these three conditions are met

  1. Price closes lower in comparison with the previous bar.
  2. Again the volume is lower in comparison to the two previous bars.
  3. If the Range is narrow.

Identifying No Demand and No Selling Pressure bars is the key to volume spread analysis. If you master this, you can very well follow the smart money and be on right side of the trade most of the time.

So by now, you must have got a better idea of volume spread analysis. This is basically a propriety method of analyzing the market which takes cues from the natural rhythms of the market and shows all the disparities in supply and demand. It is like a digital footprint of the professional traders which can be followed by anyone to trade in the market.

Also Read: Ed Seykota: A Legendary System Trader

Volume Spread Analysis AFL Code

See below the AFL code for volume spread analysis originally coded by Mr Karthik Marar
 

// Downloaded From www.WiseStockTrader.com
/////////////////////////////////////////VSA//////////////////////////////////////////////////////////////
//Volume Price Analysis AFL - VPA Version 1.0
//AFL by Karthikmarar. Detailed explanation available at www.vpanalysis.blogspot.com
//====================================================================================
_SECTION_BEGIN("Volume Price Analysis - V.1.0");
SetChartBkColor(16 ) ;
SetChartOptions(0,chartShowArrows|chartShowDates);
//=======================================================================================
DTL=Param("Linear regression period",60,10,100,10); 
wbf=Param("WRB factor",1.5,1.3,2.5,.1);
nbf=Param("NRB factor",0.7,0.3,0.9,0.1);
TL=LinRegSlope(MA(C, DTL),2); 
 Vlp=Param("Volume lookback period",15,10,300,10);
Vrg=MA(V,Vlp);
St = StDev(Vrg,Vlp); 
Vp3 = Vrg + 3*st; 
Vp2 = Vrg + 2*st;;
Vp1 = Vrg + 1*st;;
Vn1 = Vrg -1*st; 
Vn2 = Vrg -2*st; 
rg=(H-L);
arg=Wilders(rg,30);
wrb=rg>(wbf*arg);
nrb=rg<(nbf*arg); 
Vl=VRef(C,-1);
dnbar=CRef(V,-1) AND Ref(V,-1)>Ref(V,-2);
Cloc=C-L;
x=rg/Cloc;
x1=IIf(Cloc==0,arg,x);
Vb=V>Vrg OR V>Ref(V,-1);
ucls=x1<2;
dcls=x1>2;
mcls=x1<2.2 AND x1>1.8 ;
Vlcls=x1>4;
Vhcls=x1<1.35;
j=MA(C,5);
TLL=LinRegSlope(j,40) ;
Tlm=LinRegSlope(j,15) ;
tls=LinRegSlope(j,5);
mp=(H+L)/2;
_SECTION_END();
//==========================================================================================
_SECTION_BEGIN("VSA");
utbar=wrb AND dcls AND tls>0 ;
utcond1=Ref(utbar,-1) AND dnbar ;
utcond2=Ref(utbar,-1) AND dnbar AND V>Ref(V,-1);
utcond3=utbar AND V> 2*Vrg;
trbar=Ref(V,-1)>Vrg  AND Ref(upbar,-1) AND Ref(wrb,-1) AND dnbar AND dcls AND wrb AND tll>0 AND H==HHV(H,10);
Hutbar=Ref(upbar,-1) AND Ref(V,-1)>1.5*Vrg AND dnbar AND dcls AND NOT wrb AND NOT utbar;
Hutcond=Ref(Hutbar,-1) AND dnbar AND dcls AND NOT utbar;
tcbar=Ref(upbar,-1) AND H==HHV(H,5)AND dnbar AND (dcls OR mcls) AND V>vrg AND NOT wrb AND NOT Hutbar ;
Scond1=(utcond1 OR utcond2 OR utcond3) ;
Scond2=Ref(scond1,-1)==0;
scond=scond1 AND scond2;
stdn0= tll<0 AND V>Ref(V,-1) AND Ref(dnbar,-1) AND upbar AND (ucls OR mcls) AND tls<0 AND tlm<0;
stdn= V>Ref(V,-1) AND Ref(dnbar,-1) AND upbar AND (ucls OR mcls) AND tls<0 AND tlm<0;
stdn1= tll<0 AND V>(vrg*1.5) AND Ref(dnbar,-1) AND upbar AND (ucls OR mcls)AND tls<0 AND tlm<0;
stdn2=tls<0 AND Ref(V,-1)Vrg;
bycond1= stdn OR stdn1;
bycond= upbar  AND Ref(bycond1,-1);
stvol= L==LLV(L,5)  AND (ucls OR mcls) AND V>1.5*Vrg AND tll<0;
ndbar=upbar AND nrb AND Vl  AND dcls ;
nsbar=dnbar AND nrb AND Vl  AND dcls ;
nbbar= C>Ref(C,-1) AND Vl AND nrb AND x1<2;
nbbar= IIf(C>Ref(C,-1) AND V0 AND tlm>0 AND wrb;
lvtbar2= Ref(Lvtbar,-1) AND upbar AND ucls;
dbar= V>2*Vrg AND dcls AND upbar AND tls>0 AND tlm>0 AND NOT Scond1 AND NOT utbar;
eftup=H>Ref(H,-1) AND L>Ref(L,-1) AND C>Ref(C,-1) AND C>=((H-L)*0.7+L) AND rg>arg AND V>Ref(V,-1);
eftupfl=Ref(eftup,-1) AND (utbar OR utcond1 OR utcond2 OR utcond3);
eftdn=Harg AND V>Ref(V,-1);
_SECTION_END();
//=======================================================================================================================
_SECTION_BEGIN("Chart");
Vcolor=IIf(tls>0 AND tlm>0 AND tll>0,colorLime,IIf(tls>0 AND tlm>0 AND tll<0,colorGreen,
IIf(tls>0 AND tlm<0 AND tll<0,colorPaleGreen,IIf(tls<0 AND tlm<0 AND tll<0,colorRed,IIf(tls<0 AND tlm>0 AND tll>0,colorPaleGreen,
IIf(tls<0 AND tlm<0 AND tll>0,colorOrange,colorBlue))))));
GraphXSpace = 5;
Vpc= utbar OR utcond1 OR utcond2 OR utcond3 OR stdn0 OR stdn1 OR stdn2 OR stdn OR lvtbar1 OR Lvtbar OR Lvtbar2 OR Hutbar OR Hutcond OR ndbar OR stvol OR tcbar;
//PlotOHLC( Open,  High,  Low,  Close, "", vcolor, styleCandle | styleThick  );
_SECTION_END();
//////////////////////////////////////////////////////////////////////////////////////////////////////////////////


_SECTION_BEGIN("MACD Fill"); 
// Parameters
PeriodEMA = 13;
MACDIndicatorRange = 50;
// Volume filter
VolumeFilter = Param( "Volume MA filter", 100000, 50000, 500000, 100000 );
Timeframe = Interval(2);
// Adjust for weekly if necessary
if( Timeframe == "5-day" || Timeframe == "Weekly" ) {
  VolumeFilter  = VolumeFilter * 5;
}
else if( Timeframe == "Monthly") {
  VolumeFilter = VolumeFilter * 20;
}
else if( Timeframe != "Daily" ) {
  VolumeFilter = 0;
}
// Minimum number of bars required to form a divergence pattern. For a
// positive divergence, this is the number of falling bars in the context
// of a rising MACD or MACD-H pattern. Vice versa for negative divergence
MACDDivMinWidth = Param("Divergence min width", 4, 1, 10, 1 );  
// Minimum width of negative projecting wave between two positive MACD-H waves, 
// otherwise two positive waves will be considered as one single wave. This
// minimises invalid divergences, to ensure that "back of bears is broken".
// The same applies for a positive wave between two negative waves.
HistMinWidth = Param("Histogram min width", 4, 1, 10, 1 ); 
PeriodEMA = Optimize( "PeriodEMA ", 13, 5, 23, 1 );
// Other parameters
OpenPositions = 10;
ATRPeriod = 5;
InitialCapital = 100000;
PeriodFast = Param( "Fast EMA", 8, 2, 200, 1 );
PeriodSlow = Param( "Slow EMA", 17, 2, 200, 1 );
PeriodSignal = Param( "Signal EMA", 9, 2, 200, 1 );
MACDInd = MACD(PeriodFast, PeriodSlow );
SigInd = Signal(PeriodFast, PeriodSlow , PeriodSignal );
HistInd = MACDInd - SigInd ;
_N( macdStr = WriteVal( PeriodFast, 1.0 )+","+WriteVal( PeriodSlow , 1.0 ) );
_N( sigStr = macdStr + ","+WriteVal( PeriodSignal , 1.0 ) );

// Get displayed min and max value of MACD and MACD-H, to rescale it for better visibility
scMACDMax = LastValue(HHV(Max(MACDInd, sigInd), 
                  BarsSince( Status("barvisible") AND NOT Ref(Status("barvisible"),-1) ))); 
scMACDMin = LastValue(LLV(Min(MACDInd, sigInd), 
                  BarsSince( Status("barvisible") AND NOT Ref(Status("barvisible"),-1) ))); 
scaleMACD = Max( abs(scMACDMax), abs(scMACDMin) ); 
scHistMax = LastValue(HHV(HistInd, 
            BarsSince( Status("barvisible") AND NOT Ref(Status("barvisible"),-1) ))); 
scHistMin = LastValue(LLV(HistInd, 
            BarsSince( Status("barvisible") AND NOT Ref(Status("barvisible"),-1) ))); 
scaleHist = Max( abs(scHistMax), abs(scHistMin) ); 
_SECTION_END(); 
//////////////////////////////////////////////////////////////////////////////////////////////////////////MACD Fill
///MACD Fill////////End///////////////////////////////////////////////////////////////////////////////////MACD Fill
//////////////////////////////////////////////////////////////////////////////////////////////////////////MACD Fill
 
_SECTION_BEGIN("Matrix Swing");//=======================================================================================================\\ 
UpBarColor = ParamColor( "UpBar Color", colorGreen );
DownBarColor = ParamColor( "DownBar Color", colorRed );
MatixSwingSmoother= Param("Smoother", 20, 1, 100, 1);
MatrixBuy = ParamColor( "Buy Color", colorGreen );  
MatrixSell = ParamColor( "Sell Color", colorRed );
n=20;  
Var1=HHV(High,9)-LLV(Low,9);
Var2=HHV(High,9)-Close;
Var3=Close-LLV(Low,9);
Var4=Var2/Var1*100-70;
Var5=(Close-LLV(Low,60))/(HHV(High,60)-LLV(Low,60))*100;
Var6=(2*Close+High+Low)/4; 
Var7=WMA(Var3/Var1*100,3);
Var8=LLV(Low,34);
Var9=WMA(Var7,3)-WMA(Var4,9);
VarA=IIf(Var9>100,Var9-100,0);
VarB=HHV(High,34);
AA= VarA*2;
BB= EMA((Var6-Var8)/(VarB-Var8)*100,13);
VarC=EMA(0.667*Ref(BB,-1)+0.333*BB,2); 
VAR1a=(HHV(High,9)-Close)/(HHV(High,9)-LLV(Low,9))*100-70;
VAR2a=WMA(VAR1a,9)+100;
VAR3a=(Close-LLV(Low,9))/(HHV(High,9)-LLV(Low,9))*100;
VAR4a=WMA(VAR3a,3);
VAR5a=WMA(VAR4a,3)+100;
VAR6a=VAR5a-VAR2a;
S= IIf(VAR6a>n,VAR6a-n,Var6a);
barcolor=IIf(Ref(S,-1)s,Ref(s,-1),s);
Cc=Ll;
MatrixBB  = (Close - BBandBot (Close, MatixSwingSmoother, 2))
/ ((BBandTop (Close, MatixSwingSmoother, 2) - BBandBot (Close, MatixSwingSmoother, 2)));
//PlotOHLC( Oo,hh,ll,Cc, "Matrix Swing", barcolor, styleCandle|styleNoLabel );
MBuy=Cross(MatrixBB,0);
MSell=Cross(1, MatrixBB);
//PlotShapes (IIf(MBuy, shapeCircle, shapeNone) ,MatrixBuy, layer = 0, yposition =Oo, offset = 1 );
//PlotShapes (IIf(MSell, shapeCircle, shapeNone) ,Matrixsell, layer = 0, yposition = Ll, offset = 1 );
_SECTION_END();//=======================================================================================================================\\


///////////////////////////////////////////////////////////////////////////////////////
//////////////////////////////////////Candle DES////////////////////////////////////////
////////////////////////////////////////Starts//////////////////////////////////////////


_SECTION_BEGIN("hai");
/*ndele
Copiare questo dile nell'area commenti "Formula" del "Guru Commentary" di Amibroker.
Le frecce Verdi piene indicano candele Bullish "rialziste" con elevata affidabilità.
Le frecce Verdi vuote indicano candele Bullish "rialziste" con moderata e bassa affidabilità.
Le frecce Rosse piene indicano candele Bearish "ribassiste" con elevata affidabilità.
Le frecce Rosse vuote indicano candele Bearish "ribassiste" con moderata e bassa affidabilità.
Spostare il cursore e cliccare sulla candela prescelta per avere il commento.
I commenti sono di Steve Nison "Japanese Candlestick Charting Techniques" e dal sito LitWick.
**********************************************************/

/*Colori candele*/
whiteBody=C>=O;
blackBody=O>C;

/*Ampiezza candele*/
smallBodyMaximum=0.0025;//meno di 0.25%
LargeBodyMinimum=0.01;//meno di 1.0%
smallBody=(O>=C*(1-smallBodyMaximum) AND whiteBody) 
         OR (C>=O*(1-smallBodyMaximum) AND blackBody);
largeBody=(C>=O*(1+largeBodyMinimum) AND whiteBody) 
         OR C<=O*(1-largeBodyMinimum) AND blackBody;
mediumBody=NOT LargeBody AND NOT smallBody;
identicalBodies=abs(abs(Ref(O,-1)-Ref(C,-1))-abs(O-C)) < 
          abs(O-C)*smallBodyMaximum;
realBodySize=abs(O-C);


/*Shadows*/
smallUpperShadow=(whiteBody AND H<=C*(1+smallBodyMaximum))
               OR (blackBody AND H<=O*(1+smallBodyMaximum));
smallLowerShadow=(whiteBody AND L>=O*(1-smallBodyMaximum)) 
               OR (blackBody AND L>=C*(1-smallBodyMaximum));
largeUpperShadow=(whiteBody AND H>=C*(1+largeBodyMinimum)) 
               OR (blackBody AND H>=O*(1+largeBodyMinimum));
largeLowerShadow=(whiteBody AND L<=O*(1-largeBodyMinimum)) 
              OR (blackBody AND L<=C*(1-largeBodyMinimum));

/*Gaps*/
upGap=  IIf(Ref(blackBody,-1)AND whiteBody AND O>Ref(O,-1),1,
        IIf(Ref(blackbody,-1) AND blackBody AND C>Ref(O,-1),1,
        IIf(Ref(whiteBody,-1) AND whiteBody AND O>Ref(C,-1),1,
        IIf(Ref(whiteBody,-1) AND blackBody AND C>Ref(C,-1),1,0))));

downGap=IIf(Ref(blackBody,-1)AND whiteBody AND C2*realBodySize) OR
   (whiteBody AND abs(H-C)>2*realBodySize));

Hammer=smallUpperShadow AND NOT doji AND
   ((blackBody AND abs(C-L)>2*realBodySize) OR
   (whiteBody AND abs(L-O)>2*realBodySize));

tweezerTop=abs(H-Ref(H,-1))<=H*0.0025;
tweezerBottom=abs(L-Ref(L,-1))<=L*0.0025;
engulfing=
   IIf(blackBody AND Ref(blackbody,-1) AND CRef(O,-1),1,
   IIf(blackBody AND Ref(whiteBody,-1) AND O>Ref(C,-1) AND CRef(C,-1) AND ORef(O,-1)AND ORef(C,-1),1,
   IIf(blackBody AND Ref(whiteBody,-1) AND C>Ref(O,-1) AND ORef(O,-1),1,
   IIf(whiteBody AND Ref(blackBody,-1) AND O>Ref(C,-1) AND CRef(O, -3) 
              AND CRef(C,-2)AND Ref(blackbody,-1)AND 
                      blackBody AND engulfing;

/*Doji Star Bullish*/
dojiStarBullish=(dojiStar AND (MLT OR MLY))OR 
   (doji AND (C=Ref( C, -1) AND CRef(C,-1)*0.9975 AND C< Ref(C,-1)*1.0025;

/*Morning Doji Star*/
morningDojiStar= Ref(LargeBody,-2) AND Ref(blackBody,-2) AND
                 Ref(doji,-1) AND Ref(O,-1)Ref(C,-2) AND MLY;

/* Morning Star*/
morningStar =Ref(largeBody,-2) AND Ref(blackBody,-2)//Large black candle 
             AND Ref(downGap,-1)//Gap down yesterday
             AND whiteBody AND LargeBody AND C>Ref(C,-2)//Large white candle today
             AND MLY; //Yesterday was the low

/* Piercing Line*/
piercingLine= Ref(largeBody,-1) AND Ref(blackBody,-1)AND
               O=(Ref(O,-1)+Ref(C,-1))/2 AND C=Ref(C,-2) AND O>=Ref(C,-1) AND
              abs(C-Ref(C,-2))<=C*0.0025;

/*Three Inside Up harami confirming*/
threeInsideUp =Ref(Haramibullish,-1) AND whiteBody AND 
    largeBody AND C>Ref(C,-1);


/* Three Outside Up Engulfing confirmation*/
threeOutsideUp =Ref(engulfingBullish,-1) AND whiteBody AND C>Ref(C,-1);

/* Three Stars in the South*///Rewrite???
threeStarsInTheSouth=
   Ref(LargeBody,-2) AND Ref(blackBody,-2) AND Ref(largelowerShadow,-2)
   AND Ref(blackBody,-1) AND Ref(largeLowerShadow,-1) AND 
   Ref(L,-1)>Ref(L,-2) AND blackBody AND smallUpperShadow AND
   smallLowerShadow AND L>Ref(L,-1) AND HRef(C,-2) AND
                 whiteBody AND CRef(O,-4) AND NOT Ref(LargeBody,-1) AND Ref(C,-1)Ref(C,-4); 

/*RisingThreeMethods*/
risingThreeMethods=Ref(LargeBody,-4) AND Ref(whiteBody,-4) AND NOT
  Ref(LargeBody,-3) AND NOT Ref(LargeBody,-2)AND NOT Ref(LargeBody,-1) AND
  Ref(C,-3)Ref(C,-4);

/* Seperating Lines Bullish*/
separatingLinesBullish=Ref(blackBody,-1) AND whiteBody AND LargeBody AND
smallLowerShadow AND MHT AND abs(O-Ref(O,-1))<=O*0.0025;

/*Side by Side White Lines*/
sideBySideWhiteLines=NOT Ref(smallBody,-2) AND Ref(whiteBody,-2) 
   AND Ref(upGap,-1) AND Ref(whitebody,-1)AND whiteBody AND
   identicalBodies AND abs(O-Ref(O,-1))Ref(C,-1) AND Ref(C,-1)>Ref(C,-2) AND
   Ref(O,-1)>Ref(O,-2) AND Ref(O,-1)Ref(O,-1) AND Ref(smallUpperShadow,-2) AND
   Ref(smallUpperShadow,-1) AND smallUppershadow AND LLV(L,12)==Ref(L,-2);

/*Upside Gap Three Methods not very good*/
upsideGapThreeMethods=Ref(Largebody,-2) AND Ref(whiteBody,-2) AND
   Ref(LargeBody,-1) AND Ref(whiteBody,-1) AND Ref(upGap,-1) AND
   blackBody AND O>Ref(O,-1) AND CRef(O,-2) AND 
  MHY;

/*Three Line Strike not good signals*/
threeLineStrike=NOT Ref(smallBody,-3) AND NOT Ref(smallBody,-2) AND 
   NOT Ref(smallBody,-1) AND Ref(whiteBody,-3) AND Ref(whiteBody,-2) AND
   Ref(whiteBody,-1) AND Ref(C,-1)>Ref(C,-2) AND Ref(C,-2)>Ref(C,-3) AND
   blackBody AND O>Ref(C,-1) AND CRef(O,-1) AND CRef(C,-2) AND
   identicalBodies AND ORef(O,-2) AND Ref(O,-1)Ref(C,-2) AND C>Ref(C,-1) AND
   ORef(O,-1) AND Ref(LargeUpperShadow,-1) AND LargeUpperShadow
   AND C-ORef(O,-3) AND CRef(H,-1) AND C>Ref(O,-1) AND C<(Ref(O,-1)+Ref(C,-1))/2
   AND MHT;

/*Deliberation Bearish: needs confirmation*/
deliberationBearish=Ref(LargeBody,-2) AND Ref(whiteBody,-2) AND
   Ref(LargeBody,-1) AND Ref(whiteBody,-1) AND Ref(C,-1)>Ref(C,-2) AND
   smallbody AND upGap;

/*CounterAttackBearish*/
CounterAttackBearish=MHT AND LargeBody AND blackbody AND
   Ref(largeBody,-1) AND Ref(whiteBody,-1) AND
   CRef(C,-1)*0.9975;;

/*Doji Star Bearish*/
dojiStarBearish=(dojiStar AND (MHT OR MHY))OR 
   (doji AND (C>Ref(C,-1) OR O>Ref(C,-1))AND Ref(whiteBody,-1)
    AND Ref(LargeBody,-1));

/*Engulfing Bearish*/
engulfingBearish=engulfing AND largeBody AND blackBody AND 
    (Ref(whitebody,-1) OR Ref(Doji,-1))AND (MHT OR MHY);

/*Evening Doji Star check formula???*/
eveningDojiStar=Ref(LargeBody,-2) AND Ref(whiteBody,-2) AND
   Ref(dojiStar,-1) AND Ref(GapUp(),-1) AND (MHY OR MHT);

/*Evening Star*/
eveningStar=Ref(LargeBody,-2) AND Ref(whiteBody,-2) AND
   Ref(upGap,-1) AND NOT Ref(largeBody,-1) AND blackBody AND NOT smallBody AND
   (MHT OR MHY);

/*Hammer Bearish*/
HammerBearish=Hammer AND HHV(H,8)==H;

/*hangingMan*/
HangingMan=NOT largeBody AND smallUpperShadow AND LargeLowerShadow AND MHT;

/*dragonfly Doji Bearish*/
dragonflyDojiBearish=doji AND smallUpperShadow AND LargeLowerShadow AND MHT;
   
/*Harami Bearish-*/
HaramiBearish=harami AND Ref(Largebody,-1) AND Ref(whiteBody,-1)AND blackBody 
AND (MHY OR MHT);

/*HaramiCross Bearish*/
HaramiCrossBearish=harami AND doji AND Ref(whiteBody,-1) AND Ref(Largebody,-1);

/*Identical three black crows*/
idendicalThreeBlackCrows=Ref(blackBody,-2) AND Ref(blackBody,-1) AND blackBody AND
   abs(Ref(C,-2)-Ref(O,-1))Ref(C,-1)AND CRef(O,-2) AND MHY;//Third day

/*Upside Gap Two Crows*/
upsideGapTwoCrows= Ref(whiteBody,-2) AND Ref(LargeBody,-2)// first day
   AND Ref(upGap,-1) AND Ref(blackBody,-1) // 2nd day
   AND blackbody AND O>Ref(O,-1) AND CRef(C,-2);

/*Doji Star Bearish needs confirmation
dojiStarBearish=Ref(LargeBody,-1) AND Ref(whiteBody,-1) // first day
   AND doji AND upGap AND MHT;*/

/* Downside Gap Three Methods*/
downsideGapThreeMethods=
     Ref(LargeBody,-2) AND Ref(blackBody,-2) AND Ref(downGap,-2) //first day
     AND Ref(LargeBody,-1) AND Ref(blackBody,-1)//2nd day
     AND whitebody AND ORef(C,-2)
     AND LLV(L,8)==Ref(L,-1);

/*Downside Tasuki Gap*/
downsideTasukiGap=
   Ref(blackBody,-2)//first day
   AND Ref(blackbody,-1) AND Ref(downgap,-1) //2nd day
   AND whiteBody AND ORef(C,-1) AND C>Ref(O,-1) AND CRef(C,-2) 
  AND Ref(C,-2)>Ref(C,-3) AND LargeBody AND blackBody AND O>Ref(C,-4) AND
  O=Ref(C,-1);

/*On Neck Bearish not good*/
OnNeckBearish=Ref(LargeBody,-1) AND Ref(blackBody,-1) AND
   whiteBody AND O=Ref(L,-1)*0.9975;

/*separating Lines Bearish*/
separatingLinesBearish=Ref(LargeBody,-1) AND Ref(whiteBody,-1) AND
   blackBody AND O>Ref(O,-1)*0.9975 AND O<=Ref(O,-1)*1.0025;

/*Side By Side White Lines Bearish*/
sideBySideWhiteLinesBearish=NOT Ref(smallBody,-2) AND Ref(blackBody,-2) AND  
   Ref(whiteBody,-1) AND whiteBody AND Ref(downGap,-1) AND identicalBodies
  AND abs(C-Ref(C,-1)Ref(O,-3);

/*Thrusting Bearish*/
thrustingBearish=Ref(blackBody,-1) AND Ref(LargeBody,-1) AND LargeBody AND
   whitebody AND ORef(C,-1);

/*Tweezer Top*/
tweezerTop= (abs(H-Ref(H,-1))/H<0.0025 OR
               abs(H-Ref(H,-2))/H<0.0025)
               AND (MHT OR MHY); 



/* ***********************************************
         Regole di Buy (Alta Affidabilità)
**************************************************
Buy=
abandonedBabybullish OR
ConcealingBabySwallow OR 
morningDojiStar OR
morningStar OR
threeInsideUp OR
threeOutsideUp OR
MAtHoldBullish OR
risingThreeMethods OR
sideBySideWhiteLines OR
threeWhiteSoldiers;

/* ***********************************************
  Regole di Cover (Moderata e Bassa Affidabilità)
**************************************************
Cover=
beltHoldBullish OR
breakAwayBullish OR
dojiStarBullish OR
engulfingBullish OR
hammerBullish OR
dragonflyDoji OR
haramiBullish OR
HaramiCross OR
homingPigeon OR
invertedHammer OR
meetingLinesbullish OR
piercingLine OR
stickSandwich OR
threeStarsInTheSouth OR   
triStarBullish OR
threeriverBottom OR
separatingLinesBullish OR
upsideGapThreeMethods OR
threeLineStrike OR
tweezerBottom OR
upsideTasukiGap;

/************************************
Regole di Short (bassa e media affidabilità)
*************************************
Short=
advanceBlockBearish OR
beltHoldBearish OR
breakAwayBearish OR
HangingMan OR
deliberationBearish OR
CounterAttackBearish OR
engulfingBearish OR
HammerBearish OR
dragonflyDojiBearish OR
HaramiBearish OR
HaramiCrossBearish OR
MeetingLinesBearish OR
shootingStarGap OR
gravestoneDoji OR
triStarBearish OR
twoCrows OR
dojiStarBearish OR
downsideGapThreeMethods OR
downsideTasukiGap OR
inNeckBearish OR
OnNeckBearish OR
separatingLinesBearish OR
sideBySideWhiteLinesBearish OR
threeLineStrike OR
thrustingBearish OR
tweezerTop;

/************************************
Regole di Sell (alta affidabilità)
*************************************
Sell=
AbandonedBabyBearish OR
darkCloudCover OR
eveningDojiStar OR
eveningStar OR
idendicalThreeBlackCrows OR
kickingBearish OR
threeInsideDownBearish OR
threeoutsideDownBearish OR
upsideGapTwoCrows OR
fallingThreeMethods OR
threeBlackCrows;

*/

_SECTION_END();

///////////////////////////////////////////Candle Des///////////////////////////////////
///////////////////////////////////////////////End////////////////////////////////////////////////////////////////////



// Trend Detection
// Graham Kavanagh 11 Jan 05
// I am using version 4.66.2, but believe this will work with last offical Version.

function Rise( Pd, perd, Pl, perl )
{
 MAD = DEMA(Pd,perd);
 MAL = LinearReg(Pl,perl);
 CondR = ROC(MAD,1)>0 AND ROC(MAL,1)>0;
 CondF = ROC(MAD,1)<0 AND ROC(MAL,1)<0; 
 R[0] = C[0]>(H[0]+L[0])/2;

 for(i=1;i 0 AND ROC(Confirm,5) > 0;
Downward = ROC(Confirm,1) < 0 AND ROC(Confirm,5) < 0;

Select = Rs AND Ref(Fs,-1);
Caution = Fs AND Ref(Rs,-1);

Change = IIf( Rs, H/ValueWhen(Fs,L)*100, L/ValueWhen(Rs,H)*100 );

//Plot( C, "close", IIf( Rs, colorGreen, IIf( Fs, colorRed, colorBlack )), styleBar);


//GraphXSpace=10;
//_N( Title = "{{NAME}} - {{INTERVAL}} {{DATE}} Trend Plot - "+prdd+" Day" );


Filter = Select OR Caution;
AddColumn( Select, "UpTurn", 1 );
AddColumn( Caution, "DownTurn", 1 );

// ---indicator end---
//"Rise = " + Rs;
//"Fall = " + Fs;
//"Current Trend Bars = " + Bs;
//"Trend Move = " + Change + " %";
/*
	Heikin-Ashi(Koma-Ashi) with Moving Average Type
*/

UpCandle = ParamColor("Up Color", colorBrightGreen );
DownCandle = ParamColor("Down Color", colorRed );
Consolidation = ParamColor("Consolidation", colorWhite );

MACDColorUp = ParamColor("MACD Up", colorDarkGreen );
MACDColorDown = ParamColor("MACD Down", colorDarkRed );
Prd1=Param("ATR Period",4,1,20,1);
Prd2=Param("Look Back",8,1,20,1);
SetChartOptions(2, chartWrapTitle);

// Calculate Moving Average
MAPeriod = Param("MA Period", 4, 1, 100);
MAOpen = EMA(Open, MAPeriod);
MAHigh = EMA(High, MAPeriod);
MALow = EMA(Low, MAPeriod);
MAClose = EMA(Close, MAPeriod);

HaClose = (MAOpen + MAHigh + MALow + MAClose) / 4;
HaOpen = AMA(Ref(HaClose, -1), 0.5);

// for graph collapse
//for(i = 0; i <= MAPeriod; i++) HaClose[i] = Null;
/*
// same 
// HaOpen = (Ref(HaOpen, -1) + Ref(HaClose, -1)) / 2;
HaOpen[ 0 ] = HaClose[ 0 ]; 
for(i = 1; i < BarCount; i++) { 
    HaOpen[i] = (HaOpen[i - 1] + HaClose[i - 1]) / 2;
} 
*/

HaHigh = Max(MAHigh, Max(HaClose, HaOpen)); 
HaLow = Min(MALow, Min(HaClose, HaOpen)); 

// outs comments
"BarIndex = " + BarIndex();
"Open = " + Open;
"High = " + High;
"Low = " + Low;
"Close = "+ Close;
"HaOpen = " + HaOpen;
"HaHigh = " + HaHigh;
"HaLow = " + HaLow;
"HaClose = "+ HaClose;
PlotShapes( shapeHollowSmallCircle* select, colorBrightGreen, 0, HaLow, -21 );
PlotShapes( shapeHollowSmallCircle* Caution, colorRed, 0, HaHigh,21 );


pricechange=(C-Ref(C,-1))*100/Ref(C,-1);
changeponit=C-Ref(C,-1);

BrightGreen=HHV(LLV(L,Prd1)+ATR(Prd1),Prd2); 
BrightRed=LLV(HHV(H,Prd1)-ATR(Prd1),Prd2); 

xDiff = (HaHigh - Halow) * IIf(StrFind(Name(),"JPY"),100,10000);

barcolor = IIf(C>BrightGreen ,UpCandle,IIf(C < BrightRed,DownCandle,Consolidation)); 

//SetBarFillColor(  );
SetBarFillColor(IIf(Mbuy,colorBlue,IIf(MSell, colorYellow,IIf(MACDInd >SigInd, MACDColorUp,MACDColorDown)))); 

PlotOHLC( HaOpen, HaHigh, HaLow, HaClose, "", barcolor, styleCandle|styleNoLabel );

//////////////////////////////////////////////////////////////////////////////

_SECTION_BEGIN("Pivot");
nBars = Param("Number of bars", 12, 5, 40);
bShowTCZ = Param("Show TCZ", 1, 0, 1); 
nExploreBarIdx = 0;
nExploreDate = 0;
nCurDateNum = 0;
DN = DateNum();
DT = DateTime();
bTCZLong = False;
bTCZShort = False;
nAnchorPivIdx = 0;
ADX8 = ADX(8);
if(Status("action")==1) {
	bDraw = True;
	bUseLastVis = 1;
} else {
	bDraw = False;
	bUseLastVis = False;
	bTrace = 1;
	nExploreDate = Status("rangetodate");
	for (i=LastValue(BarIndex());i>=0;i--) {
		nCurDateNum = DN[i];
		if (nCurDateNum == nExploreDate) {
			nExploreBarIdx = i;
		}
	}
}
GraphXSpace=7;
if (bDraw) {
}
aHPivs = H - H;
aLPivs = L - L;
aHPivHighs = H - H;
aLPivLows = L - L;
aHPivIdxs = H - H;
aLPivIdxs = L - L;
aAddedHPivs = H - H;
aAddedLPivs = L - L;
aLegVol = H - H;
aRetrcVol = H - H;
nHPivs = 0;
nLPivs = 0;
lastHPIdx = 0;
lastLPIdx = 0;
lastHPH = 0;
lastLPL = 0;
curPivBarIdx = 0;
aHHVBars = HHVBars(H, nBars);
aLLVBars = LLVBars(L, nBars);
aHHV = HHV(H, nBars);
aLLV = LLV(L, nBars);
nLastVisBar = LastValue(
	Highest(IIf(Status("barvisible"), BarIndex(), 0)));
curBar = IIf(nlastVisBar > 0 AND bUseLastVis, nlastVisBar, 
	IIf(Status("action")==4 AND nExploreBarIdx > 0, nExploreBarIdx,
	LastValue(BarIndex())));
curTrend = "";
if (aLLVBars[curBar] < aHHVBars[curBar]) 
	curTrend = "D";
else 
	curTrend = "U";
if (curBar >= 120) {
	for (i=0; i<120; i++) { 
		curBar = IIf(nlastVisBar > 0 AND bUseLastVis, 
			nlastVisBar-i, 
			IIf(Status("action")==4 AND nExploreBarIdx > 0, 
			nExploreBarIdx-i,
			LastValue(BarIndex())-i));
		if (aLLVBars[curBar] < aHHVBars[curBar]) {
			if (curTrend == "U") {
				curTrend = "D";
				curPivBarIdx = curBar - aLLVBars[curBar];
				aLPivs[curPivBarIdx] = 1;
				aLPivLows[nLPivs] = L[curPivBarIdx];
				aLPivIdxs[nLPivs] = curPivBarIdx;
				nLPivs++;
			}
		} else {
			if (curTrend == "D") {
				curTrend = "U";
				curPivBarIdx = curBar - aHHVBars[curBar];
				aHPivs[curPivBarIdx] = 1;
				aHPivHighs[nHPivs] = H[curPivBarIdx];
				aHPivIdxs[nHPivs] = curPivBarIdx;
				nHPivs++;
			}
		}		
	} 
}
curBar = 
	IIf(nlastVisBar > 0 AND bUseLastVis, 
	nlastVisBar, 
	IIf(Status("action")==4 AND nExploreBarIdx > 0, 
	nExploreBarIdx,
	LastValue(BarIndex()))
	);
if (nHPivs >= 2 AND nLPivs >= 2) {
	lastLPIdx = aLPivIdxs[0];
	lastLPL = aLPivLows[0];
	lastHPIdx = aHPivIdxs[0];
	lastHPH = aHPivHighs[0];
	nLastHOrLPivIdx = Max(lastLPIdx, lastHPIdx);
	nAddPivsRng = curBar - nLastHOrLPivIdx;
	aLLVAfterLastPiv = LLV(L, nAddPivsRng);  
	nLLVAfterLastPiv = aLLVAfterLastPiv[curBar];
	aLLVIdxAfterLastPiv = LLVBars(L, nAddPivsRng);  
	nLLVIdxAfterLastPiv = curBar - aLLVIdxAfterLastPiv[curBar];
	aHHVAfterLastPiv = HHV(H, nAddPivsRng); 
	nHHVAfterLastPiv = aHHVAfterLastPiv[curBar];
	aHHVIdxAfterLastPiv = HHVBars(H, nAddPivsRng); 
	nHHVIdxAfterLastPiv = curBar - aHHVIdxAfterLastPiv[curBar];
	if (lastHPIdx > lastLPIdx) {
	
		/*	There are at least two possibilities here. One is that
	   		the previous high was higher, indicating that this is a 
	   		possible short retracement or one in the making.
	   		The other is that the previous high was lower, indicating 
	   		that this is a possible long retracement in the working. 
			However, both depend on opposing pivots. E.g., if I find 
			higher highs, what if I have lower lows?  
		
			If the highs are descending, then I can consider:
	   			- a lower low, and leave it at that
	   			- a higher high and higher low
	   			- a lower low and another lower high
		*/
		if (aHPivHighs[0] < aHPivHighs[1]) {
	
			if (nLLVAfterLastPiv < aLPivLows[0] AND 
				(nLLVIdxAfterLastPiv - lastHPIdx - 1) >= 1
				AND nLLVIdxAfterLastPiv != curBar	) {
	
				// -- OK, we'll add this as a pivot. 
				//    Mark it for plotting...
				aLPivs[nLLVIdxAfterLastPiv] = 1;
				aAddedLPivs[nLLVIdxAfterLastPiv] = 1;
		
				//    ...and then rearrange elements in the 
				//    pivot information arrays
				for (j=0; j aLPivLows[0] AND 
				(nLLVIdxAfterLastPiv - lastHPIdx - 1) >= 1
				AND nLLVIdxAfterLastPiv != curBar	) {
	
				// -- OK, we'll add this as a pivot. 
				//    Mark it for plotting...
				aLPivs[nLLVIdxAfterLastPiv] = 1;
				aAddedLPivs[nLLVIdxAfterLastPiv] = 1;
		
				//    ...and then rearrange elements in the 
				//    pivot information arrays
				for (j=0; j= 1
				AND nHHVIdxAfterLastPiv != curBar	) {
	
				// -- OK, we'll add this as a pivot. 
				//    Mark that for plotting
				aHPivs[nHHVIdxAfterLastPiv] = 1;
				aAddedHPivs[nHHVIdxAfterLastPiv] = 1;
	
				//    ...and then rearrange elements in the 
				//    pivot information arrays
				for (j=0; j aHPivHighs[0] AND 
				(nHHVIdxAfterLastPiv - lastLPIdx - 1) >= 1
				AND nHHVIdxAfterLastPiv != curBar	) {
	
				// -- OK, we'll add this as a pivot. 
				//    Mark it for plotting...
				aHPivs[nHHVIdxAfterLastPiv] = 1;
				aAddedHPivs[nHHVIdxAfterLastPiv] = 1;
	
				//    ...and then rearrange elements in the 
				//    pivot information arrays
				for (j=0; j Ref(HaHigh,-1) AND Ref(HaHigh,1) < HaHigh;//Peak
PKV0 = ValueWhen(PK,HaHigh,0);//PeakValue0
PKV1 = ValueWhen(PK,HaHigh,1);//PeakValue1
PKV2 = ValueWhen(PK,HaHigh,2);//PeakValue2
MPK = PKV2 < PKV1 AND PKV1 > PKV0 ;//MajorPeak
MPKV = ValueWhen(Ref(MPK,-1) == 0 AND MPK == 1, PKV1,1); //MajorPeakValue
MPKD = ValueWhen(Ref(MPK,-1) == 0 AND MPK == 1, DateNum(),1); //MajorPeakDate
SD = IIf(DateNum() < LastValue(MPKD,lastmode = True ), Null, LastValue(MPKV,Lastmode = True));//SelectedDate
Plot(SD, "LastMinorResistance",colorDarkGrey,styleLine);

//PLOT THE SECOND LAST MAJOR PEAK RESISTANCE LINE
MPKV2 = ValueWhen(Ref(MPK,-1) == 0 AND MPK == 1, PKV1,2); //MajorPeakValue
MPKD2 = ValueWhen(Ref(MPK,-1) == 0 AND MPK == 1, DateNum(),2); //MajorPeakDate
SD2 = IIf(DateNum() < LastValue(MPKD2,lastmode = True ), Null, LastValue(MPKV2,Lastmode = True));//SelectedDate
Plot(SD2, "LastMajorResistance",colorDarkGrey,styleLine);
_SECTION_END();

_SECTION_BEGIN("Support");
SP = Ref(HaLow,1) > HaLow AND HaLow < Ref(HaLow,-1);//Peak
SPV0 = ValueWhen(SP,HaLow,0);//PeakValue0
SPV1 = ValueWhen(SP,HaLow,1);//PeakValue1
SPV2 = ValueWhen(SP,HaLow,2);//PeakValue2
MSP = SPV2 > SPV1 AND SPV1 < SPV0 ;//MajorPeak
MSPV = ValueWhen(Ref(MSP,-1) == 0 AND MSP == 1, SPV1,1); 
MSPD = ValueWhen(Ref(MSP,-1) == 0 AND MSP == 1, DateNum(),1); 
SD = IIf(DateNum() < LastValue(MSPD,lastmode = True ), Null, LastValue(MSPV,Lastmode = True));
Plot(SD,"LastMinorSupport",colorDarkGrey,styleLine);


MSPV2 = ValueWhen(Ref(MSP,-1) == 0 AND MSP == 1, SPV1,2); 
MSPD2 = ValueWhen(Ref(MSP,-1) == 0 AND MSP == 1, DateNum(),2); 
SD2 = IIf(DateNum() < LastValue(MSPD2,lastmode = True ), Null, LastValue(MSPV2,Lastmode = True));
Plot(SD2,"LastMajorSupport",colorDarkGrey,styleLine);

_SECTION_END();




_N(Title = StrFormat("\\c02**AAA2nd.formula**...{{NAME}} | {{DATE}} | {{VALUES}}",O, H, L, C, SelectedValue( ROC( C, 1 )) )

+"\n"+EncodeColor(colorOrange) +"Open      = " + EncodeColor(colorWhite) + O + 
"\n"+EncodeColor(colorOrange) +"High       = " + EncodeColor(5) + H +
"\n"+EncodeColor(colorOrange) +"Low        = " + EncodeColor(colorRed) + L  
+"\n"+WriteIf( Ref(C,-1)Vp2,EncodeColor(colorLime)+"Very High",WriteIf(V>Vp1,EncodeColor(colorLime)+" High",WriteIf(V>Vrg,EncodeColor(colorLime)+"Above Average",
WriteIf(VVn1,EncodeColor(colorRed)+"Less than Average",WriteIf(V\nNison: Ha maggior significato se il volume delle candele bianche è maggiore rispetto a quello delle candele nere.\nReliability second LitWick: High. \n","") +
WriteIf(sideBySideWhiteLines,"(+) Side by Side White Lines. Pattern continued.\nNison: if in a downtrend may be caused by ricoperture be Short.\nReliability Second LitWick: High. \n","") +
WriteIf(threeWhiteSoldiers,"(+) 3 White Soldiers. Pattern continued.\nNison: Positive, but pay attention to such negative pattern of stalemate and subsequent pattern of the block.\nReliability second LitWick: High. \n","") +
/***************************************
                 Candle Down - Bearish 
********************************************/
EncodeColor(colorRed)+

WriteIf(AbandonedBabyBearish,"(-) Abandoned Baby Bearish. Pattern reversal.\nNison: Extremely rare.\nReliability second LitWick: High. \n","") +
WriteIf(advanceBlockBearish,"(-) Advancing Block Bearish. Pattern reversal.\nNison: Rally has problems. A sign of weakness could be a gradual decrease in the bodies of white candles OR the presence of relatively higher long queues on the last two white candles. NOT necessarily a reversal pattern.\nReliability Second LitWick: Moderate \n","") +
WriteIf(darkCloudCover,"(-) Dark Cloud Cover. Pattern reversal.\nNison: Factors that indicate the importance of this signal is: \\ n 1) Magggior penetration of the first candle in the second. \\ n 2) If both candles are marabozu. \\ n 3) The body of the second candle on a significant level of resistance. \n 4) High-volume days in socondo.\nReliability second LitWick: High. \n","") +
WriteIf(eveningDojiStar,"(-) Evening Doji Star. Pattern reversal.\nNison: must be confirmed by a long black candle.\nReliability second LitWick: High. \n","") +
WriteIf(eveningStar,"(-) Evening Star. Pattern reversal.\nNison: the gap between the second and third candle body is not always present.\nReliability second LitWick: High. \n","") +
WriteIf(HammerBearish,"(-) Bearish Hammer. Pattern reversal.\nNison: more bearish if the hammer is black. E 'bearish confirmation needed. A significant gap down the next day will be confirmed. \n","") +
WriteIf(dragonflyDojiBearish,"(-) Dragonfly Bearish. Pattern reversal.\nNison: as in 'Hanging Man'.\nReliability Second LitWick: Moderate \n","") +
WriteIf(HaramiBearish,"(-) Harami Bearish. Pattern reversal.\nNison: not as significant as' hanging man 'and' engulfing '.\nReliability second LitWick: Low. \n","") +
WriteIf(idendicalThreeBlackCrows,"(-) Identical 3 Black Crows. Pattern di inversione in uptrend.\nNison: very bearish.\nReliability Second LitWick: High. \n","") +
WriteIf(kickingBearish,"(-) Kicking Bearish. Pattern reversal.\nReliability second LitWick: High. \n","") +
WriteIf(threeInsideDownBearish,"(-) 3 Inside Down. Pattern reversal.\nReliability second LitWick: High. \n","") +
WriteIf(threeoutsideDownBearish,"(-) 3 Outside Down. Pattern reversal.\nReliability second LitWick: High. \n","") +
WriteIf(upsideGapTwoCrows,"(-) Upside Gap 2 Crows. Pattern reversal.\nNison: requires confirmation with inversion continued on the third day.\nReliability second LitWick: High. \n","") +
WriteIf(fallingThreeMethods,"(-) Falling 3 Methods. Pattern continued.\nReliability second LitWick: High. \n","") +
WriteIf(threeBlackCrows,"(-) 3 Black Crows. Pattern reversal.\nNison: should look after a rise 'mature'.\nReliability Second LitWick: High. \n","") +
/***********************************************
               Short sell

**************************************************/
EncodeColor(colorPink)+
WriteIf(beltHoldBearish,"(-) Belt Hold Bearish. Pattern reversal.\nNison: The longer the height of the candle is the most significant pattern.\nReliability second LitWick: Low. \n","") +
WriteIf(breakAwayBearish,"(-) breakvar Away Bearish. Pattern reversal.\nReliability second LitWick: Moderate \n","") +
WriteIf(HangingMan,"(-) Hanging Man. Pattern reversal.\nNison: Such a 'bearish hammer' with a significant gap down the next day. \nReliability second LitWick: Low. \n","") +
WriteIf(deliberationBearish,"(-) Deliberation Bearish. Pattern reversal.\nNison: It is not a real pattern of reversal, but a sign that the rally is weakening. \n Reliability second LitWick: Moderate \n","") +
WriteIf(CounterAttackBearish,"(-) Counter Attack Bearish.\nNison: un potenziale stallo del rally. \n","") +
WriteIf(engulfingBearish,"(-) Engulfing Bearish. Pattern reversal.\nNison: Important sign of reversal. The factors that increase the importance of the patterns are: \n 1) above the candle has a very small body AND the Second candle is a very large body. \n 2) the pattern appears after a protracted OR moving very fast. \n 3 ) High volumes in the Second Day. \n 4) on the Second Day covers the body more than a body of candles before.\nReliability Second LitWick: Moderate \n","") +
WriteIf(HaramiCrossBearish,"(-) Harami Cross Bearish. Pattern reversal.\nNison: more significant downtrend pattern of 'Harami'. The second day, the candle can be white or black.\nReliability second LitWick: Moderate \n","") +
WriteIf(MeetingLinesBearish,"(-) Meeting Lines Bearish. Pattern reversal.\nReliability second LitWick: moderate, but not so strong as' Dark Cloud Cover '. \n","") +
WriteIf(shootingStarGap,"(-) Shooting Star. Pattern reversal.\nNison: not so important as an 'evening star'. Ideally, the body of the candle should be in a gap from the body of the candle before. It should appear after a positive trend.\nReliability second LitWick: Low. \n","") +
WriteIf(gravestoneDoji,"(-) Gravestone Doji. Pattern reversal.\nNison: more significant when touching a new all-time high.\nReliability second LitWick: Moderate \n","") +
WriteIf(triStarBearish,"(-) Tri-Star Bearish. Pattern reversal.\nNison: pattern of very significant reversal.\nReliability second LitWick: Moderate \n","") +
WriteIf(twoCrows,"(-) 2 Crows. Pattern reversal.\nReliability second LitWick: Moderate \n","") +
WriteIf(dojiStarBearish,"(-) Doji Star Bearish. Pattern reversal.\nNison: Requires confirmation.\nReliability second LitWick: Moderate \n","") +
WriteIf(downsideGapThreeMethods,"(-) Downside Gap 3 Methods. Pattern continued.\nReliability second LitWick: Moderate \n","") +
WriteIf(downsideTasukiGap,"(-) Downside Tasuki Gap. Method of continuation.\nNison: if the last Day we closed the gap, the pattern to continuevar is denied.\nReliability Second LitWick: Moderate \n","") +
WriteIf(inNeckBearish,"(-) In Neck Bearish. Pattern continued.\nNison: as in 'piercing pattern' but more bearish on the second day because there is no penetration.\nReliability second LitWick: Moderate \n","") +
WriteIf(OnNeckBearish,"(-) On Neck Bearish. Pattern continued. Similar to 'piercing'ma more bearish because there is no penetration on the second day.\nReliability second LitWick: Moderate \n","") +
WriteIf(separatingLinesBearish,"(-) Separating Lines Bearish. \n","") +
WriteIf(sideBySideWhiteLinesBearish,"(-) Side by Side White Lines Bearish. Pattern continued.\nNison: very rare.\nReliability Second LitWick: Moderate \n","") +
WriteIf(threeLineStrike,"(-) 3 Line Strike. Pattern continued.\nReliability second LitWick: Low. \n","") +
WriteIf(thrustingBearish,"(-) Thrusting. Pattern continued.\nNison: is not a day of reversal because the second day does not engage the midpoint of the first day.\nReliability second LitWick: Low. \n","") +
WriteIf(tweezerTop,"(-) Tweezer Top. Pattern reversal.\nNison: Requires confirmation. \n","")

+"\n"
+"\n"
+"\n"
+"\n"

)
;

///////////////////////////////////////////////////////////////////////////////////////
_SECTION_BEGIN("WMA1");
P = ParamField("Price field",-1);
//Periods = Param("Periods",8, 2, 300, 1, 10 );
Plot( WMA( P, 8 ), "WMA(8)", colorOrange, ParamStyle("Style") ); 
_SECTION_END();

_SECTION_BEGIN("WMA3");
P = ParamField("Price field",-1);
//Periods = Param("Periods", 12, 2, 300, 1, 10 );
Plot( WMA( P, 12 ), "WMA(12)", colorGreen, ParamStyle("Style") ); 
_SECTION_END();

_SECTION_BEGIN("WMA4");
P = ParamField("Price field",-1);
//Periods = Param("Periods", 15, 2, 300, 1, 10 );
Plot( WMA( P, 15 ), "WMA(15)", colorRed, ParamStyle("Style") ); 
_SECTION_END();

_SECTION_BEGIN("WMA");
P = ParamField("Price field",-1);
//Periods = Param("Periods", 200, 2, 300, 1, 10 );
Plot( WMA( P, 200), "WMA(200)", colorYellow, 8 ); 
_SECTION_END();

_SECTION_BEGIN("WMA6");
P = ParamField("Price field",-1);
//Periods = Param("Periods", 50, 2, 300, 1, 10 );
Plot( WMA( P, 50 ), "WMA(50)", colorPink, ParamStyle("Style") ); 
_SECTION_END();

_SECTION_BEGIN("WMA7");
P = ParamField("Price field",-1);
//Periods = Param("Periods", 100, 2, 300, 1, 10 );
Plot( WMA( P, 100 ), "WMA(100)", ParamColor( "Color", colorCycle ), ParamStyle("Style") ); 
_SECTION_END();

In Which Markets VSA Works?

It works in all the financial markets ranging from stocks, forex, futures etc. Price and volume concepts are applied in every financial market. As VSA depends on these two factors, it has found its applicability in instruments. In the markets where volume levels are unknown or difficult to calculate (like spot forex) volume spread analysis gets tricky.

Conclusion

VSA is definitely a must have element in every traders’ toolkit. It takes time to learn and master this concept but it’s worth. Following smart money would surely increase your win rate and profitability.

Price and volume always holds mysterious relationship in financial markets and VSA is one of the sure shot attempt to uncover this mystery.

 

2 Comments

  1. Dear Sir,
    Can I get excel sheet for VSA ? However I am using Amibroker , can use above quote. But nowadays I am finding google spreadsheet more easy.

    • Hi Suhas,

      Believe me, even I find Excel easier than Amibroker 🙂

      Will try to come up with excel sheet for VSA soon.

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