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Miscellaneous > Ergotic_TVI (Tick Volume Indicator)

Article/Author: Origin: http://www.traders2traders.com. Coded by: Ernie Bonugli, Jim Johnson Author: William Blau

Download: Tsi_etc.ela

File Includes:

Indicator - Ergotic_TVI
Function - DTI
Function - DTI_Trade
Function - HMU
Function - LMD
Function - MDI
Function - TSI
Function - TVI
Function - DXAverage
Function - TXAverage
Indicator - *DTI Signal
Indicator - DTI
Indicator - DTI_Trade
Indicator - Ergotic_CSI
Indicator - Ergotic_MACD
Indicator - Ergotic_MDI
Indicator - Ergotic_TSI
Indicator - Ergotic_TSI-2

Category: Indicator > Miscellaneous

Description:

This is one of the techniques described by William Blau in his book "Momentum, Direction and Divergence" (1995). If you like to learn more, we advise you to read this book. His book focuses on three key aspects of trading: momentum, direction and divergence. Blau, who was an electrical engineer before becoming a trader, thoroughly examines the relationship between price and momentum in step-by-step examples. From this grounding, he then looks at the deficiencies in other oscillators and introduces some innovative techniques, including a fresh twist on Stochastics. On directional issues, he analyzes the intricacies of ADX and offers a unique approach to help define trending and non-trending periods.

TVI indicator is calculated according to this formula:

TVI = 100 x (DEMA(UpTicks) - DEMA(DownTicks))/(DEMA(UpTicks) + DEMA(DownTicks))


Usage:

The TVI helps identify whether buyers or sellers are in control. If the TVI is trending up, it indicates that buyers are in control. If the TVI is trending down, it indicates that sellers are in control. If the TVI is above zero, it indicates that net buying has taken place over the time period displayed. If the TVI is below zero, it indicates that net selling has taken place over the time period displayed.

If a large number of trades are taking place at a specific price level (i.e., a flat spot forms on the tick chart) and the TVI is rising (falling), look for the price to break out on the upside (downside).




Inputs:

r - period of first EMA
s - period of second EMA
SigLen - number of bars to plot Signal Line
ZeroLine - Zeroline

EasyLanguage Code:
{FORMAT: ERGOTIC_TVI(R)

SIGNALLINE(R) }

INPUTS: R(11), S(5), SIGLEN(5), ZEROLINE(0);

VALUE1 = TVI(R, S);

VALUE2 = XAVERAGE(TVI(R,S), SIGLEN);

PLOT1(VALUE1, "ERGTVI");
PLOT2(VALUE2, "SIGLINE");
PLOT3(ZEROLINE, "ZERO");