FX TRADING SYSTEMS
The Marney Volume Indicator™
therefore
provides a significant improvement over the classic volume rule of simply looking for above average volume.
For any given time of day, we therefore know not only whether volume is above or below average but by how much, for that time of day also whether it is likely going to increase or decrease.
Marney Range Indictor A similar technique can be
The top yellow line is the Marney Volume Indicator™ (MVI) and the bottom yellow line is a simple moving average applied to the volume, showing the dramatic difference that time-adjusting the average makes.
The MVI line shows the time-adjusted average over the previous 50 sessions. By time-adjusting the averages, the unique, predictable profiles of each currency pair are revealed. i.e. the volume from 0000hrs to 0100hrs is taken for the previous 50 sessions and the average is plotted, followed by 0100hrs to 0200hrs for each of the twenty-four hours in the trading day, by using arrays in the code for the indicator.
14 FX TRADER MAGAZINE July - September 2010
applied to ranges, taking the true range for each hour of the day over a preceding number of days and plotting that as a time-adjusted average. An illustration is shown below using the same
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