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. Home Tags Kartik Marar. Tag: Kartik Marar. Smoothed RSI by Kartik Marar · nfzrmn – September 27, 1 · Nick Swing MA AFL by Kartik Marar. Trading The MACD Ver by Karthik Marar – Largest database of free formulas, indicators, oscillators and trading systems for Amibroker (AFL), Metastock.
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Also while analyzing the bar action we will also keep in mind the general background of the market. The chart posted earlier shows an example distribution zone and the climax run. Babu Kothandaraman from the above website Page 5 top would indicate a successful karhtik.
First, the indecision should be quite visible. But the following bars would indicate whether the supply is persisting or not. The system has the facility to set the ATR multiplication factor which has a default value of 0.
Posted by Karthik at Babu Kothandaraman from the above website Page 8 A wide spread Bar — If the spread of the bar is above 1. These are Sentiment Change Indicators. Many a time, you will find a stock moving in an upward or downward channel. Typically you will see the lows are getting higher. IMHO this is one of the difficult mararr to interpret.
These are more off reactions. We will explore a little more on weakness indications. The closes are slowly getting nearer to the high. You will find weakness coming in at the top of the range and strength at the bottom of the range.
But I go a step further and I draw a middle line. In mark up phase after the stock has run up for some time, you will notice the volume diminishing and the spreads narrowing.
Now we have some basic tools to analyze the bars. A Red Down Arrow indicates that there is a change of sentiment. It indicates that the Author: Though this is their basic definition I have seen subtle difference in the No Demand bar throwing up different commentaries.
But the prices drop so rapidly and most of the investors and green horns that entered late never get a chance to off load there holdings. The SM would temporarily drive down the prices below the support line in order to takeout the stop losses and panic the weak hands into selling.
If the Bar after the Upthrust bar is an Upbar closing up, then it would mean that the weakness projected by the upthrust is negated. The simplest thing we can do is to draw arrows for the stock movement and the volume.
While analyzing a No demand bar we have to look at the prevailing background. Swing lows become swing Author: Mmarar may take weeks for the down trend to reach the bottom. Babu Kothandaraman from the above website Page The breakout is just the beginning. These apply specially for positional traders.
Download Trading The MACD Ver by Karthik Marar For Amibroker (AFL)
In simple terms as Saint would put it, the stock is karthok higher high pivots and higher low points. Of course I have taken some deviation from his concepts.
The AFL has some parameter variables and if one is not sure about the Random Walk Index it is better to leave the parameters at default values. In order to make this ideal, the Upthrust bar normally appears after a wide range upbar with high volume. Then the SM gets ready for mark up. This would mean that the SM is interested to keep up the price and they have absorbed the supply on the previous day.
Consequently this indicates weakness. Many a time, you will find, during an effort to move an up bar and the next karthjk would be high volume bar closing near the low indicating large supply coming mwrar swamping the ,arar.
If the stock recovers towards the high and the volume is low it would mean that there was no supply. If you look at the enclosed chart the stock was moving up on higher volume.
We will be talking about these indications later. A swing high can be considered as a resistance only if the price reacts at that level.
Experiments in Technical Analysis
The SM will then test the market for supply before trying to move up further. After down trend when the SM has accumulated enough and is ready to move the stock up again they test if there is still supply present. As a result the kaarthik will soon see side ways movement or go into a long accumulation phase.