An investor could potentially lose all or more than the initial investment.
Risk Disclosure: Futures and forex trading contains substantial risk and is not for every investor. In a medium term uptrend, SVAPO will generally continue to move above the 0-reference line.įor short term scalping or for finding additional medium term entry points SVAPO can be used with a period of only 3 bars and a zero per thousand minimum price change.įor data series that do not have volume, I developed a SVAPO price only oscillator. Medium term turning points in an up or downtrend are mostly announced with a divergence between price and SVAPO. The same is valid for a short term down move when SVAPO turns down from above the upper standard deviation boundary.
The start of a short term up move is signaled by SVAPO when it turns up from below the lower standard deviation boundary. Special offer: "Capturing Profit with technical Analysis" Stdevper:= Input("Standard Deviation Period :", 1, 200, 100) So, I am applying a number of specific techniques for the final SVAPO creation. Using conventional smoothing techniques, like moving averages, will create an unacceptable delay for a short term oscillator.
There will be no volume taken into consideration when calculating the oscillator.Ī raw combination of price and volume will result in a much too choppy oscillator. When volume is moving down, price is in a consolidation phase in either direction. We will subtract the volume when calculating the oscillator. In a down trending market, price goes down while volume is up. We will sum the volume when calculating the oscillator.
In an up trending market, price and volume are moving up. Table 1 and 2 show their normal relationship.Ĭombining these two tables in a market direction, leaves us with 3 possible conditions (table 3): To construct a short term oscillator based on price and volume, we have to look at the relationship between these two components in an up trending and a down trending market. I like the name SVAPO, because it also starts with my initials! SVAPO or "Short term Volume And Price Oscillator", is my oscillator based on price and volume, looking at the relationship between these two components in an up trending and a down trending market. HOME Back to MetaStock Formulas Overview SVAPO
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