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Time Based Volume Indicator - OOEL Version - FREE TRADING VIDEO

Posted in
Time Based Volume on Forex Chart
SKU: ooel2
Price: $245.00

Time Based Volume Indicator - The Only Undistorted Volume Indicator

Why Use Time Based Volume Indicator - OOEL Version?

Most traders know that volume is extremely important in making decisions in the trading profession and the vast majority of experienced traders would argue it’s the second most vital piece of information other than price itself. It tells a trader how many investors, whether they be day traders or long term, are participating on the buying and selling of a symbol during any given price bar. Volume often leads price, and if not leads, results in more pressure to the buying or selling of the symbol, given it a direction - up or down. However, few traders take the time to master volume, and for those who do, even fewer take time to look at volume in a different manor other than simply plotting a histogram. Then, they simply read the current bar volume, compared to the average volume.

We at believe there is an inherent flaw in looking at volume in this manor. Not through the use of a histogram, but the nature of what the volume on the histogram represents. Why? Because although it may look as if volume is up over 100% on say a 5 minute time bar, it does not answer the question, what is the current volume compared to volume during that time bar "x" days back? For example lets say you see volume increase 300% on the 3:55 PM eastern time compared to average volume. Although this may be true, it's misleading to the true characteristic of volume since this 300% increase is just the end-of-day volume increase. Thus, it does not reveal the true percentage increase because you are comparing 3:55 PM bar time vs. the average of a range from maybe 12 noon to 3:55 PM which is a bad comparison.

So how does one get around this problem? Well the key is to take the volume at 3:55 PM and compare it to the median value from the exact same time bars of 3:55 PM over the past month. This will tell if the volume increase referenced above is truly an increase or decrease in volume compared to that exact time during the trading day. This is exactly how's Time Based Volume Indicator provides undistorted volume to traders.

From the original example, the 300% increase vs average volume may actually be a decrease in volume compared to the median value of 3:55 PM over the prior 1 month of 3:55 PM trading volume. Time Based Volume is what we feel is the only undistored way of looking at volume, given it provides a more accurate way of looking at the percentage increase or decrease for any given trading time. This is true whether you are using a volume histogram, or something slightly more complicated such as On Balance Volume, Volume Momentum or Volume Accumulation/Distribution.

The Object Oriented Easy Language Version of Time Based Volume decided to revamp the original Time Based Volume Indicator into a OOEL (Object Oriented Easy Language) version. At first we did not know what to expect given this was our first experience with using the new abilities of OOEL. What we did know was the original version of Time Based Volume Normalized was over 8,800 lines of code. Our extensive knowledge of other Object Oriented languages gave us confidence that we could use OOEL to create a more modular program that was much smaller in regards to number of lines of code, and therefore easier to make changes when needed. What we were not sure of was how fast the new OOEL would process the code. For example, the original version of the Time Based Volume indicator used arrays to perform most of the processing. However, in order to shorten the lines of code we knew we had to use the OOEL Vector class. The worry was just how much faster or possibly slower, the use of the Vector class would have on the processing time.

Well, in the end we had a program that went from over 8,800 lines of code to less than 300 lines of code. However maybe the most impressive aspect of the new program is the processing speed was 200 to 300% faster. Furthermore, with the use of Vectors, the program became much more flexible allowing the indicator to be used on as small as 1 minute time bars on a 24 hour forex or futures chart. Thus, we ended up with an enhanced indicator, that was much smaller, cleaner, and faster plus easier to maintain and make code enhancements. The Time Based Volume Indicator works on all intraday Futures, Forex, and Stock charts. The Time Based Volume Indicator works on RadarScreen too for all intraday Futures and Stock symbols.

Please note:
All OOEL Indicators requires trading platform to have OOEL. Additionally this indicator uses Time Based Volume technology which requires a "time based chart" this indicator will only operate on intraday time based charts and intraday time based RadarScreen symbols.

To see the Time Based Volume Indicator in action watch the webinar-video.

This very essential Time Based Volume Indicators is the only undistorted volume indicator. Just add it to your shopping cart, by clicking "Add To Cart" below.