Price-Volume Relationship- A Different Perspective.

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  #1  
Old 20th May 2007, 06:38 PM
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Default Price-Volume Relationship- A Different Perspective.



I experiment a lot on Excel and one of my favorites is to study the price volume relationship in a different way than conventional charts.

Volume is overlayed right on the price and I think this method 'connects' volume to price in a better way, than conventional charts, where volume is overlayed below the price and we tend to take it for granted!

Attached chart shows Reliance vs volume for the period Jan 2, 2007 to May 18, 2007. Notable features are the rising volumes and falling prices in the earlier part of the chart, rising volumes and rising prices in the middle part, and rising prices and falling volumes in the extreme right edge of the chart.

Compare this with a conventional chart and see the difference.

Colors: Red=Price, Blue=Volume, Yellow=10 day average of volume.

ss

Attached Images
File Type: png RIL_BLOG.PNG (18.7 KB, 88 views)
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  #2  
Old 20th May 2007, 07:28 PM
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Default Re: Price-Volume Relationship- A Different Perspective.

Hi SS,

how are you!

well, i observe three volume climaxes.
The middle one is very important than the other two and hence the trend changed after the middle volume climax.

I leave it upto you to think why middle volume climax is important since it is easily observable!

am i right? correct me buddy if am wrong,

Regards,
Winston

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  #3  
Old 20th May 2007, 09:45 PM
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Default Re: Price-Volume Relationship- A Different Perspective.

Hello Friends

Here is something on P V relationship

Regards
Niranjanam

Attached Files
File Type: pdf PVRelation.pdf (19.7 KB, 59 views)
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  #4  
Old 20th May 2007, 10:02 PM
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Default Re: Price-Volume Relationship- A Different Perspective.

Hi

Spydertrader's Jack Hershey Equities Journal at Elite trader will be helpful to you I suppose

Niranjanam

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  #5  
Old 21st May 2007, 02:19 AM
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Default Re: Price-Volume Relationship- A Different Perspective.

Quote:
Originally Posted by Niranjanam View Post
Hi

Spydertrader's Jack Hershey Equities Journal at Elite trader will be helpful to you I suppose

Niranjanam
Thanks for the link Niranjanam.

In the case of RIL, the middle climax volume that Winstonn refers too would be the Peak volume (in downtrend) according to Hershey's method (although his method seems to be a long-only one)

Nothing very novel about the method though - just a better packaged version of the usual 'buy-on-pullback-sell-on-climax' method. Not even bidirectional. Even the quantification of the DU volume (& therefore the FRV & PV) is subjective.

Regards,
Kalyan.

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  #6  
Old 21st May 2007, 02:44 PM
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Default Re: Price-Volume Relationship- A Different Perspective.

Here is a variation. Yesterdays price is substracted from todays price and the result is multiplied by todays volume.

Chart is for HLL. from Jan 2, 2007 to May 18, 2007.

ss

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File Type: gif HLL_BLOG.gif (10.3 KB, 31 views)
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  #7  
Old 21st May 2007, 03:05 PM
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Default Re: Price-Volume Relationship- A Different Perspective.

Quote:
Originally Posted by sunil saranjame View Post
Here is a variation. Yesterdays price is substracted from todays price and the result is multiplied by todays volume.

Chart is for HLL. from Jan 2, 2007 to May 18, 2007.

ss
That's Elder's Force Index The raw values are too jagged Try a 14 day MA to see the divergences better.

Regards,
Kalyan.

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  #8  
Old 21st May 2007, 03:48 PM
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Default Re: Price-Volume Relationship- A Different Perspective.

Quote:
Originally Posted by kkseal View Post
That's Elder's Force Index The raw values are too jagged Try a 14 day MA to see the divergences better.

Regards,
Kalyan.
Of course it is! It feels better on Excel!

Thanks Kalyan,

ss

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  #9  
Old 11th June 2007, 10:57 AM
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Default Re: Price-Volume Relationship- A Different Perspective.

thank u. I will look into it.

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  #10  
Old 11th June 2007, 11:15 AM
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Default Re: Price-Volume Relationship- A Different Perspective.

Wow what does a cool snake looks like ,wearing a designer glass ?

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