$UVOL/$DVOL Comparison

[MC]

Chan provided us with a link on this setup awhile ago. I just wanted to show how I run this as an indicator.

[cire2222]

excellent post. I may add-on to this later with other ways to watch. Good stuff

[MC]

WOW. How above that 12:1 closing strength of the DVOL?

There was some price action chop but all in all this should have helped you stay looking for short trades and only scalping long if you even had the nerves to attempt a long.

[MC]

I am starting to love the UVOL setup here. I also run ADVN/DECN, TRIN for the extremes and VIX for an inverse look at the markets. Price action still rules, but these give a good glimpse into the health of the markets IMO.



So we can see here nothing but price action is always 100% correct, otherwise we'd all be rich. But if you look at UVOL/DVOL expansion or contraction in relation to each other you can often get clues on which is the right side of a trade. If you have a bigger chart I'm sure the moves on the indices are even more clear in relation to this. I had to have things somewhat scrunched up to get it to post and capture right.

Notice Thursday. I just saw something I didn't catch before.
Wicked divergence, basically hidden selling. So you have UVOL smashing DVOL all day but most the day was consolidation. And it ended with a surge of UVOL but very light price action. So there ya go, there's another use for this that I'll add to my bag o' tricks.

Enjoy

[Simonyadig]

What do the UVOL & DVOL measure and do you always use the 2 together? It looks like they reset themselves (their relation to each other) everyday too, right? Do you use this mainly for confirming a move?

That's pretty pimp, thanks for sharing.

[MC]

Originally Posted by Simonyadig

What do the UVOL & DVOL measure and do you always use the 2 together? It looks like they reset themselves (their relation to each other) everyday too, right? Do you use this mainly for confirming a move?

That's pretty pimp, thanks for sharing.

Another example on 1 minute charting. The divergence I can see in hindsight is stunning. If I can put it together live and trust it, this could be a silver bullet of sorts. It could be used for confirmation of a breakout/breakdown, reversal, impending weakness or maybe other things also?

I believe it just measures the up volume / down volume on the NYSE. I don't think they get granular like uvol is the volume on advancing issues and dvol is volume on declining etc... Maybe Chan knows and can confirm since he's the one that turned me onto this setup.

Advances & Declines - Yahoo! Finance

[MC]

Todays installment.
Strong into close.

[MC]

Originally Posted by Simonyadig

What do the UVOL & DVOL measure and do you always use the 2 together? It looks like they reset themselves (their relation to each other) everyday too, right? Do you use this mainly for confirming a move?

That's pretty pimp, thanks for sharing.

I just remembered I intended to come back and answer the 2nd portion of your question. Sorry.

They reset at each open like you said, I'm finding the close from the day before can often give hints of the next days open. But as always it needs to be taken with a grain of salt.

The other thing some might not pick up on is the fact that just because UVOL is on top dosen't mean the trend is up. It has to be looked at in relation to what DVOL is doing as well. Both going up almost equally means chop, but one should note the ratio seperating the 2.

Really this is like anything else and no holy grail. I would just use this for confirmation of a move or to see if the move is diverging like the below examples show.

[emexa1]

Originally Posted by MC

I am starting to love the UVOL setup here. I also run ADVN/DECN, TRIN for the extremes and VIX for an inverse look at the markets. Price action still rules, but these give a good glimpse into the health of the markets IMO.



So we can see here nothing but price action is always 100% correct, otherwise we'd all be rich. But if you look at UVOL/DVOL expansion or contraction in relation to each other you can often get clues on which is the right side of a trade. If you have a bigger chart I'm sure the moves on the indices are even more clear in relation to this. I had to have things somewhat scrunched up to get it to post and capture right.

Notice Thursday. I just saw something I didn't catch before.
Wicked divergence, basically hidden selling. So you have UVOL smashing DVOL all day but most the day was consolidation. And it ended with a surge of UVOL but very light price action. So there ya go, there's another use for this that I'll add to my bag o' tricks.

Enjoy

Hi,

Please tell me how to get a chart for comparing at least 2 symbols. The vertical axis should be price and horizontal..time.

Thank you.

Emexa

[MC]

Originally Posted by emexa1

Hi,

Please tell me how to get a chart for comparing at least 2 symbols. The vertical axis should be price and horizontal..time.

Thank you.

Emexa

What platform?