S-Trader Volumetric : Introduction

Here I shall introduce a new S-Trader custom indicator called "S-Trader Volumetric".

Extracted from Investopedia website.

"Volume is an important indicator in technical analysis as it is used to measure the relative worth of a market move. If the markets make a strong price movement, then the strength of that movement depends on the volume for that period. The higher the volume during the price move, the more significant the move."

An example chart of Barrick Gold Corp (NYSE : ABX).

From the chart, we can observe those price action that made 3/6/9/12-month High followed with strong volume. (As highlighted by Blue Colour Arrow). 

However, it can be quite challenging for some untrained eye to use raw volume to make judegement whether it is average, high or very high/ultra high volume.

S-Trader Volumetric is developed to overcome that matter.
Please take note that the Volumetric is a supplement indicator to the existing Volume indicator and not a replacement.

An example chart is shown below with S-Trader Volumetric.

The table below illustrates the Volumetric representation.

Notice that its much easy for the users to interpret the relative volume using Volumetric. All those volume indicated earlier by the arrow can be shown as High relative volume rather than a subjective expression (such as strong or higher volume).



Chart Source :
1) Metastock