Candle spread multiplied by the volume

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premiercrypto11
Posts: 3
Joined: Tue May 25, 2021 5:15 pm
Location: Miami, Florida

Candle spread multiplied by the volume

Post by premiercrypto11 »

Hello,

Why does the PVSRA candle trigger use higher than average volume OR the spread multiplied by the volume?

Candles triggered with the spread multiplied by the volume, occasionally trigger candles with lower than average volume and even color candles that have a majority of thin volume.

What does the spread multiplied by the volume indicate to the trader in your eyes?

Thank you,

Premier Crypto

From the User Notes for the Candles indicator, which you should have read by now as part of HOMEWORK......

PVA candlesticks are used with PVA volume for easy recognition of specific chart time frame bars where special price and volume situations occur. The situations, or requirements for the PVA colors used are as follows.
Situation "Climax"
When volume >= 200% of the average volume of the 10 previous chart TFs or where the product of candle spread x candle volume is >= the highest for the 10 previous chart time TFs.
Default Colors: Bull bars are green and bear bars are red.

Situation "Volume Rising Above Average"
When volume >= 150% of the average volume of the 10 previous chart TFs.
Default Colors: Bull bars are blue and bear are blue-violet.

These "situations" basically find most of: when relative volume went high while MM's confined price spread (possibly MMs filling SM orders within limited spread?) and when the product of relative volume x spread went high (possibly MMs willing to begin a move?). Regardless of which, these situations alert us to relative activity increases that might be important buying and selling clues in the overall support and resistance picture. - Tah
premiercrypto11
Posts: 3
Joined: Tue May 25, 2021 5:15 pm
Location: Miami, Florida

Re: Candle spread multiplied by the volume

Post by premiercrypto11 »

Hi TAH,

I have been studying and using PVSRA for six months now. I read the User Notes, your Golden Posts collection, and this forum's content very carefully.

The question I posted was to learn the logic behind the or where the product of candle spread x candle volume is >= the highest for the ten previous chart time TFs scenario. I get that it is significant, or it wouldn't be there. I will consider the possibilities you described in my future S&R analysis.

I appreciate all that you and this forum do for the trading community.

Sincerely,

Premier Crypto

Well, you might consider these as possibilities:

1. Using "the ten previous chart time TFs" helps to focus on the most recent activity, to help isolate what might be changing, or might be the harbinger of something more coming.
2. Candle spread shows movement. Low spread, no volume means no market interest at this time. Low spread, high volume means notable order filling! High spread without notable volume might only be that the MMs are shifting price to a new area for order filling (where more pending orders are). High spread with notable volume might be the beginning of a "Run for Profits".

- Tah
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