Expected Volume and Actual Volume (volume indicator)


#1

my question is:

I can understand the movement of the Actual Volume for each individual bar (on any chart) that is number of Volume going up or down but why the Expected Volume for that bar is moving also? up or down? shouldn’t be stationary? and if not why?

i am trying to understand the coordination between any individual bar going red/green, up/down, Vic/ No Vic and movement of the Actual Volume and Expected Volume up or down for that bar.

this is specially fascinating to me when volume does not exceed the Actual.

thanks.


#2

If you haven’t watched this, you may find it will help clear up any questions you have. It’s for the older version of the indicator, but very much still relevant.

I hope this was helpful.

Peter


#3

hay Peter, thanks for info. great help.
how is trading business going? i hope all well and prosper.

trying to figure out a pattern between price movement on a single bar and movement of actual Vol and expected Vol (analysis/paralysis). lol…

you know this is somehow easy when you have step-up or step-down exceeding volume with up or down trend but when is not exceeding it drive you nuts. looks to me price action on the one bar has to do with convergent or diverging of the actual Vol. and expected Vol for that bar…ya no kidin…lol. i am just thinking out loud…well back to the charts…

hay, thanks again and was great to heir from you.


#4

@hiarhi

Hello Hiarhi

All is well, thanks for asking.

One of the things I do is I look at the bar volume, which you can get by using the middle click button on your mouse while hovering over a candle and it will show it in the data popup. Then you can compare the volume over a series of bars to see what is going on (you could also use the volume histogram, but during slower periods when there isn’t much volume, the histogram is smaller). The volume histogram gives you an average volume over a specific period (I usually use 10 minute volume). Looking at the data box on popup on the bars will show you the actual volume within that bar (if you are using bars that aren’t based on time then you will see a difference between the two). If you understand what your looking at, you can use this to enhance your analysis and give yourself a little bit of an edge.

I hope this made sense for you.

Peter


#5

Thanks for the info Peter.

Nino.