V. 22:7 (50-60): Volume Flow Indicator Performance by Markos Katsanos

V. 22:7 (50-60): Volume Flow Indicator Performance by Markos Katsanos
Item# \V22\C07\146KATS.PDF
Availability: In Stock

Product Description

Volume Flow Indicator Performance by Markos Katsanos

Find out how well the volume flow indicator performs in this, the second of a two-part series on the VFI.

Last month, I introduced a long-term money flow indicator I call the volume flow indicator (VFI). The VFI is based on the on-balance volume† (OBV), but with three important modifications:

• Positive readings indicate a bullish state and negative readings a bearish state.

• The calculation is based on the day’s median instead of the closing price.

• A threshold was introduced to take into account minimal price changes and another threshold to eliminate excessive volume.

To assess the efficacy of the new indicator and whether the modifications added any value, I tested VFI against OBV, the buy and hold method, and a price-based indicator. In order to evaluate the new indicator’s properties, I conducted tests using divergence, direction, and indicator level signals separately. The same tests were repeated substituting VFI with OBV and a price-based indicator.

*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at store.traders.com users can view the S&C Digital Edition in the subscriber's section on Traders.com.

Take Control of Your Trading.
Professional Traders' Starter Kit
All these items shown below only $299.99!
  • 5-year subscription to Technical Analysis of STOCKS & COMMODITIES, The Traders' magazine. (Shipping outside the US is extra. Washington state addresses require sales tax based on your locale.)
  • 5 year access to S&C Archive
  • 5 year access to S&C Digital Edition
  • 5-year subscription to Traders.com Advantage.
  • 5-year subscription to Working Money.
  • Free book selection.
  • Click Here to Order