Traders’ Tips by Technical Analysis, Inc.
• TRADESTATION: FINITE VOLUME ELEMENTS (FVE)
Markos Katsanos’ article “Detecting Breakouts” describes
the calculation and use of a price-volume indicator called the
finite volume element (FVE). Katsanos provides a detailed
Excel spreadsheet in the article, and I’ve used it to write the
equivalent EasyLanguage code for the FVE. We named this
indicator “FiniteVolumeElement.” Katsanos spends much of the article discussing divergence
between price and FVE trends. He defines these trends in
terms of linear regression slopes. The following indicator,
“FinVolEleLinRegSl,” plots these two slopes (Figure 1).