Wednesday, February 11, 2009
Identifying short-term institutional participation with A/D volume and issues' volatility indicators
I have been paying attention lately to AD issues and AD volume's volatility studies as forward indicators of short term sentiment.
Heightened volatility in the advancing - declining issues' volume has my particular interest because I use it to verify if short term moves are just market maker chop or have real institutional interest.
Of course, its all under Dr. Brett's more valuable relative median 30 minute volume on E-mini S&P sentiment, which really tells if institutions are behind the moves or not at the time.
I use in TOS Historical volatility and ATR on 3 minute heikin Ashi charts.
For Historical Volatility inputs, I use long length:10 and short length 3
For ATR, I use 10.
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