Email of the day (1)
Comment of the Day

July 26 2010

Commentary by Eoin Treacy

Email of the day (1)

on the VAD indicator and moving average settings
"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.

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