How to Interpret Time Segmented Volume for Entries and
Exits
Time
Segmented Volume TSV is unique in its formulation as a Volume Oscillator.
Although there are a couple of other Volume Oscillators in the TC2000 indicator
list, this one is far superior due to the unusual inclusion of Price as well as
Volume in the formula.
With all 3 data pieces of market data in the formula and
using a subordinate indicator, Technical Traders can see contrarian patterns
that lead price sufficiently for earlier entries which result in higher profits. This is particularly beneficial during Bottoming
and Topping Market Conditions.
Go watch the How to Trade the Stock Market Webinar,
and learn how to find stocks to trade, choose the most profitable stock,
and identify the risk of the trade.
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Time
Segmented Volume is NOT oscillating on highs and lows of Volume action. It oscillates on
a comparative value of Volume over Time. The period setting is the comparative
value which is extremely useful, and not always available in most indicators.
By using a comparative value of X number of days, Traders can set the period to
the timeframe most useful for their personal Trading Style.
When set
properly Time Segmented Volume leads as much as 2-4 days ahead of any Price and
Time indicator. These include the persistently popular MACD and Stochastic
Indicators which are lagging more and more, as the market becomes more
automated with highly sophisticated multi-leg conditional orders for the Dark
Pools and more complex algorithms for High Frequency Trading Firms. Dark Pools are
the giant Buy Side Institutions who control vast quantities of assets, and use
off-exchange venues for most of their activity.
Go watch the Time Segmented Volume webinar and learn
how to track
Dark Pools that trigger High Frequency Trader explosive runs and huge gaps.
Crossover/bottom/top signals, converge/diverge.
Time
Segmented Volume is one of the few indicators that reveals Dark Pool activity
PRIOR to the High Frequency Trading Firms sudden runs, gaps, and huge candles that
follow Dark Pool accumulation.
It is one of
those indicators that has many different signal patterns, which tell traders
different information and leads price. The chart example below shows one of the
numerous signal patterns which forms on a regular basis, in the bottom chart
window Time
Segmented Volume TSV.
The stock has
been in a selling mode for several weeks. The run is momentum at the moment,
which often encourages Retail Traders to Sell Short. However, Time Segmented
Volume has struck the bottom of its chart and has ticked up on the down sell
day. This is a contrarian pattern that frequently forms on this indicator
during momentum selling.
This
contrarian pattern on Time Segmented Volume warns Traders of the
following 3 things:
1. If
you are Selling Short, it is time to exit the trade
2. Do
not attempt to Sell Short, as the stock is about to reverse
3. Prepare
for upside momentum action
This is
invaluable information that helps Traders exit just before a big bounce or
reversal, and it tells them ahead of time to prepare for an upside Momentum
Run.
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The Time
Segmented Volume line crosses over its subordinate indicator which is an
Exponential Moving Average, signaling again early that the stock is going
to bolt upward with momentum.
How to Interpret Time Segmented Volume for Entries and Exits
Time Segmented Volume TSV is unique in its formulation as a Volume Oscillator. Although there are a couple of other Volume Oscillators in the TC2000 indicator list, this one is far superior due to the unusual inclusion of Price as well as Volume in the formula.With all 3 data pieces of market data in the formula and using a subordinate indicator, Technical Traders can see contrarian patterns that lead price sufficiently for earlier entries which result in higher profits. This is particularly beneficial during Bottoming and Topping Market Conditions.
Go watch the How to Trade the Stock Market Webinar,
and learn how to find stocks to trade, choose the most profitable stock,
and identify the risk of the trade.
Go to the TechniTrader
Go watch the Time Segmented Volume webinar and learn
how to track
Dark Pools that trigger High Frequency Trader explosive runs and huge gaps.
Crossover/bottom/top signals, converge/diverge.
Time
Segmented Volume is one of the few indicators that reveals Dark Pool activity
PRIOR to the High Frequency Trading Firms sudden runs, gaps, and huge candles that
follow Dark Pool accumulation.
It is one of
those indicators that has many different signal patterns, which tell traders
different information and leads price. The chart example below shows one of the
numerous signal patterns which forms on a regular basis, in the bottom chart
window Time
Segmented Volume TSV.
The stock has
been in a selling mode for several weeks. The run is momentum at the moment,
which often encourages Retail Traders to Sell Short. However, Time Segmented
Volume has struck the bottom of its chart and has ticked up on the down sell
day. This is a contrarian pattern that frequently forms on this indicator
during momentum selling.
This
contrarian pattern on Time Segmented Volume warns Traders of the
following 3 things:
1. If
you are Selling Short, it is time to exit the trade
2. Do
not attempt to Sell Short, as the stock is about to reverse
3. Prepare
for upside momentum action
This is
invaluable information that helps Traders exit just before a big bounce or
reversal, and it tells them ahead of time to prepare for an upside Momentum
Run.
Go to the TechniTrader Candlestick Charts webinar to learn how to identify the best patterns, entry and exit signals, and what patterns are most reliable.
Go to the TechniTrader Candlestick Charts webinar to learn how to identify the best patterns, entry and exit signals, and what patterns are most reliable.
Go to the TechniTrader
The Time
Segmented Volume line crosses over its subordinate indicator which is an
Exponential Moving Average, signaling again early that the stock is going
to bolt upward with momentum.
The stock runs 99 points upward before it has another Time Segmented Volume spike to the top of the chart, this time warning that a selling for profit mode is about to start.
The
stock ran with Momentum Runs that continued upward over a month with minor
profit taking. This provided several opportunities to enjoy great gains. Time Segmented Volume is a leading
indicator.
Summary
Learning to interpret Time Segmented Volume is important for our modern automated marketplace. It is an excellent indicator with numerous patterns that are easy to learn and quickly identify. The key is understanding what each pattern represents.
Time Segmented Volume is able to reveal the following information:
1. Giant Institution Dark Pool Quiet Accumulation, as well as Quiet Rotation™ and Distribution patterns.
2. It will show if the buying is sustainable, based on whether it is smaller lots or larger lots buying.
3. Extreme conditions in Volume and Price, which will reverse the trend up or down.
4. Consistency of Volume over time, allowing longer holds for short-term trades.
5. When to prepare for an Entry or Exit, a day to few days ahead of a reversal run.
Go to the TechniTrader Learning Center and watch a wide variety of training webinars. There
are also Libraries for TC2000, StockCharts.com, and MetaStock Users.
Go to the TechniTrader
TechniTrader
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Trade Wisely,
Martha Stokes CMT
TechniTrader technical analysis using TC2000 charts, courtesy of Worden Bros.
Chartered Market Technician
Instructor & Developer of TechniTrader Stock and Option Courses
TechniTrader DVDs with every course.
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