Bolton Tremblay Indicator

Advance Decline group - Volume-Up/Down - Bolton-Tremblay Indicator

At this point, two other representatives will be presented from the group of Advance Decline Indicators. The beginning should be made ​​with the Volume-Up/Down who uses the traded volume of shares increased and fallen in a market as a starting point. The indicator consists accordingly of two different lines, the Up and Down Volume Index Volume Index. The former indicates the increase in the measured volume values​​, the latter of that of the fallen prices. The possible interpretation of Volume-Up/Down is thus almost obvious: If the value of volume-down higher than the volume-up selling pressure prevails in the other case corresponding sales pressure. The crossing of two lines can be used for upcoming trend reversal as a possible clue.


Finally should be mentioned briefly the Bolton-Tremblay Indicator, which forms on the one unchanged, and increased the ratio of closing values ​​of a market or index and the other that of fallen and closing values ​​unchanged. To give the whole thing mathematical complexity, the values ​​are subtracted, then take the square root of it. In the end, there is a continuous summation of the values ​​determined. Mathematically, this daring construct calculated as follows:

AdAdv if (t)bigger AdDec (t)
BTI (t) = BTI (t-1) + sqrt ((AdAdv (t) / AdUcg (t)) - (AdDec (t) / AdUcg (t)))

otherwise
BTI (t) = BTI (t-1) + sqrt (abs (AdAdv (t) / AdUcg (t)) - (AdDec (t) / AdUcg (t))))

What are possible interpretations or konkrrete entry and exit signals are concerned, the principle is said to be related to numerous A / D representatives.