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Technical Analysis, Studies, Indicators:
Up/Down
Price
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Studies
"Up/Down Price" is a new indicator developed by the MarketVolume research
team. The purpose of this indicator is to select prolonged in time
trends and evaluate the magnitude of these trends.
To set this indicator, a trader has to select a condition and period
(number of bars). For instance, on 1-year chart (1 bar = 1 day) a trader
may select to show the periods when the market was in a down move for
more than 4 bars (4 days) and the "Up/Down Price indicator" will select
these periods and will evaluate the magnitude of the selected trends.
Similar to the example above, a trader may set conditions to show the
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 goes
up for more than 3 days in a row and for more than 2.5% in total, then
in many cases the price could be expected to lower in the future (see
chart below). By having this information a trader may analyze the past
and use it as an additional indicator that may help predict trend
reversal.
Chart 3: Up/Down Price
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