Email of the day (1)
"Could you please explain the VAD [Volume Adjusted price] as a tool? What's its significance & what are their uses as a market moving tool?
Please also reconfirm [I'm sure its been explained before], how I can confirm my settings such as the differing moving averages [i.e. 200 for weekly, and 90 or 50 for daily] without having to change them physically when I go from weekly to daily charts. Thanks for your help."
Eoin Treacy's view Thank
you for these questions which I'm sure will be of interest to subscribers. VAD
attempts to use volume to assess whether money is flowing in or out of an instrument.
When a divergence appears between the VAD indicator and the price trend, such
as when prices range but the VAD is rising, it suggests that the instrument
is under accumulation. When the VAD is falling while prices are ranging it suggests
the instrument is experiencing distribution. David went through a number of
examples on July
22nd which you may find instructive.
This article
from stockcharts.com - ChartSchool focusing on the Accumulation / Distribution
Line is close enough to the VAD calculation that they are for all intents and
purposes analogous.
The Chart
Library's moving averages always refer to days irrespective of what chart period
you are looking at. This means that the 200-day moving average will appear exactly
the same on daily, weekly, monthly or quarterly charts so you do not need to
set separate moving average defaults for different chart periods.
Once
you have customised your setting you can save them as a template by clicking
on the Charting tab, found in the charcoal bar above the chart and hitting save
at the top of the popup window. Give the template a name and hit ok. Refresh
the page. The new template will now have been added to the Chart menu dropdown
located at the top of the page. More detailed instructions on how to create
your own Preset templates can be found here.