This script is meant to give you a Relative Strength indication of the stock. The goal is to use a similar calculation as used by IBD.
It calculates the performance of the current stock for the last year (most recent quarter is weighted double) and compares it to the performance of a reference index or ticker (default is "SPY").
IBD would give you a value between...
3 Weeks Tight - Introduction
3 weeks tight is a bullish continuation pattern discovered by IBD's founder, William O'Neil.
The pattern can used as an opportunity to add to an existing position as it often occurs after a breakout above a cup with handle or other technical pattern.
The 3 weeks tight pattern forms when a stock closes within approximately 1% to 1.5%...
Up/Down Volume Ratio is calculated by summing volume on days when it closes up and divide that total by the volume on days when the stock closed down.
High volume up days are typically a sign of accumulation(buying) by big players, while down days are signs of distribution(selling) by big market players. The Up Down volume ratio takes this assumption and turns...
This script automatically flags distribution days. Distribution days are defined as any day that is down -0.2% or greater on heavier volume than the previous day. Distribution days are counted on the major indexes (S&P 500, NASDAQ, NYSE, etc...) within the CANSLIM methodology.
For completeness of Relative Strength studies, the Relative Strength based on rate of changes (ROC) with weighting is coded and presented as well.
The RS.ROC is similar to the formulation of RS by IBD before rank among all the stocks in the market.
The lookback period is relaxed for customizing. Once you set the total lookback period, representing the 4Q, in the...
CONTAINS 3 OF MY BEST VOLUME INDICATORS ALL FOR THE PRICE OF ONE!
Average Dollar Volume in RED
Up/Down Volume Ratio in Green
Volume Buzz/Volume Run Rate in BLUE
If you would like to get these individually, I also have scripts for that too.
Below is information about all three of these indicators, what they do, and why they are...
Volume Buzz/Volume Run Rate as seen on TC2000 and MarketSmith respectively.
Basically, the volume buzz tells you what percentage over average(100 time period moving average) the volume traded was. You can use this indicator to more readily identify above-average trading volume and accumulation days on charts. The percentage will show up in the top left corner,...
Dollar volume is simply the volume traded multiplied times the cost of the stock.
Dollar volume is an extremely important metric for finding stocks with enough liquidity for market makers to position themselves in. Market Liquidity is defined as market's feature whereby an individual or firm can quickly purchase or sell an asset without causing a drastic change...
A relative strength overlay, similar to that of IBD shown on Marketsmith.
The value is not from 0-100, it is compared with the Nasdaq x2 ETF, QLD. Therefore, if greater than zero it will give you a good indication that the stock has a very good relative strength.
Feel free to change the comparison ETF to one of your choosing.
This is the original script to my other Relative Strength indicator (link below) It provides a graphical overlay of the Relative Strength, compared to the QLD, a Nasdaq x2 ETF.
You can not use the value to compare to other stocks or securities, as it is scaled based on the price (so it can be used as an overlay).
If you want a value which you can use to...