Up Down Price

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"Up/Down Price" is a new indicator developed by the MarketVolume® research team. The purpose of this indicator is to select prolonged trends and evaluate the magnitude of them.

To set this indicator, a trader must select a condition and a period (number of bars). For example, on a 1-year chart (1 bar = 1 day), a trader may choose to show the periods when the market was in a downward move for more than 4 bars (4 days). Then, the "Up/Down Price indicator" will select these periods and evaluate the magnitude of the selected trends. Like the example above, a trader may set conditions to show those periods when the index was more than 5 bars in the up-trends.

The "Up/Down Price" indicators help to select and evaluate the most recent trends. For instance, if a trader sees that, after the price rises for more than three days in a row and for more than 2.5% in total, he may expect the price to decline in the future (see the chart below). By having this information, a trader may analyze the past and use it as an additional indicator that may help to predict a trend reversal.

Chart 3: Up/Down Price
 

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