MDA - Market Direction Analysis

[augieboo]

Warp,

Up Volume/Total Volume, Down Volume/Total Volume and Up-Down Volume/Total Volume should essentially give you the same reading though. Correct??

Basically, but I think that the percentage version will give a more accurate representation of what's going on, especially over longer time frames.

Here's my latest experiment, which I call the PNPVO, (for Percentage Net-Positive Volume Oscillator).

Here's how I calculated it:

1. Find the Percentage Net Postive Volume (PNPV) for each day, i.e., positive volume / (positive v + negative v + unchanged v)

2. Find the 13 and 21 day SMA for the PNPV

3. Apply a bastardization of the formula for the PVO, i.e., PVO = (13-day SMA - 21-day SMA)/ 13-day SMA)

This gives results in percentage terms, which I like, but I'm not sure if my mathematical reasoning is sound, i.e., I'm taking percentages more than once. (Perhaps our resident mathematician, MM, would comment?)

Anyhoo, it draws a fairly pretty chart:




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