Trade Range and Velocity

[pman777]

Hi, looking for some input/guidance. Is there a study that measures the relationship between range of price movement and volume velocity? For example, an oscillator that shows whether price is falling/rising on light volume vs heavy volume. thanks!

[NinjaTrader_PaulH]

Hello pman777,

Thanks for your post.

I recommend that you review the indicator descriptions in the helpguide as these may help you in your quest. Oddly enough the first one on the lst may be what you are looking for ADL. (Accumulation/Distribution Line)

ADL, "There are many indicators available to measure volume and the flow of money for a particular stock, index or security. One of the most popular volume indicators over the years has been the Accumulation/Distribution Line. The basic premise behind volume indicators, including the Accumulation/Distribution Line, is that volume precedes price. Volume reflects the amount of shares traded in a particular stock, and is a direct reflection of the money flowing into and out of a stock. Many times before a stock advances, there will be period of increased volume just prior to the move. Most volume or money flow indicators are designed to identify early increases in positive or negative volume flow to gain an edge before the price moves. (Note: the terms "money flow" and "volume flow" are essentially interchangeable.)"

Here is a link to all of the indicators and each contains a description of function: https://ninjatrader.com/support/help...indicators.htm (Note to see the list you will need to double left click on the left panel to then see all the indicators).

Hopefully, other community members will jump in and put their thoughts in as well.