Time Segmented Volume – The Undistorted TradeStation Indicator

Many traders ignore volume. Although volume is a simple concept, it is difficult to analyze correctly due to inherent challenges in the markets. These challenges make it impossible to read true volume with standard volume indicators. Read through this article to learn the best way to overcome volume distortions and how using a TradeStation indicator called Time Segmented Volume will increase your trading “edge”.

Often traders use average volume indicators where the average of volume is calculated over a given number of past bars to see if volume is increasing or decreasing over that time period. It is okay to look at volume this way, but you will be missing the most vital volume information. This is not the best approach to analyze volume.

Volume has inherent distortions which cause faulty analysis by many traders. For example in the stock market (and other markets to a lesser degree), the opening of the day is fraught with a multitude of orders that had built up overnight and all get processed at once. This large influx of trade volume creates a major distortion to what is actually happening in the market.

Another distortion is created in the middle of the day when the majority of market makers go to lunch and market activity slows down immensely. This is called the lunch doldrums.

A third distortion happens at the end of the day, when traders try to adjust their orders before the market closes. They may want to be flat overnight or they might want to get into a trade, but this influx of orders at the end of the day is another distortion to volume.

Another inherent challenge to using a volume average indicator is that every instrument has considerably different levels of volume. For example compare, GE with 40 million shares per day vs. a stock with 100,000 shares per day. This vast difference makes it difficult to read volume from one symbol to another symbol.

Additionally, if you change from one time frame to another there will be huge volume differences. The volume on a 1 minute bar chart is much different than the volume on a 60 minute bar chart or a daily chart. The key to getting past these challenges is to use the time segmented volume TradeStation Indicator.

Time segmented volume is the way to get consistent volume data and eliminate all the volume distortions that we discussed above. Here’s the key to why time segmented volume works: Let’s start with volume on a 5 minute chart and for this example, look at the 10:15 bar. Now take the average of only the 10:15 bars over the prior month and compare that average to the current 10:15 bar. The difference will give a true reading on whether today’s 10:15 bar volume is higher or lower in comparison to the exact same time bars over the past month.

Now when you read the 10:15 bar you read the price bar against the volume bar. For example, let’s say the price action shows a larger than normal bar, maybe 2 times normal. Let’s say price started out close to the bottom of the bar with no wick, and it runs up and closes close to the top of the bar. This means a strong bullish bar, but if you look down and you see less than average volume, then you should be cautious about the price movement. In contrast, if you see 200% or 300% percent volume you’ll know that increased volume was the reason for the extra large price bar. In this example the price bar and volume bar are in harmony.

Alternatively, if you saw that same 200% – 300% volume bar, but the price action looked completely different, let’s say it was a bar that was 1.5 times normal size. Let’s say it started very close to the bottom for the open, it ran up to a high and then it pulled back and closed in the lower third. This is a bearish sign. Now this would be saying a major switch took place and the volume was cause by bearish selling volume. The sellers came in and over dominated the buyers and pushed it from the top of the range clear down into the bottom of the range before closing. If this bar occurred at the end of a multiple bar move up it is probably the end of the up cycle and it might be time to reverse your trade direction.

The key to understanding volume is reading price action and volume action on the same exact bars, using time segmented volume to give you the true volume information you need, and reading the chart to see if price and volume are in harmony or if they are divergent. Time segmented volume can confirm the move, make you suspect of the move, or tell you if it is the end of the move and if a likely change in direction is coming. In any case, using time segmented volume will eliminate volume distortions and increase your trading edge.

A King’s Collection: Tapestries at Hampton Court Palace

Henry VIII, king of England from 1509 to 1547, is famous for many things. But not everyone knows he was a great collector. For one thing, he collected wives. He married six different women in an age where divorce was basically forbidden and wives didn’t cooperate by dropping dead on their own very often. The king also collected houses. He laid claim to numerous great homes and palaces, including Westminster, Berkhamsted, Fotheringhay, Warwick, Kenilworth, and some of his favorites: Greenwich, Whitehall, and Hampton Court. He even had Royal Residences in the Tower of London. One of King Henry’s biggest collections was tapestries. He eventually collected more than 2,000 of these woven pictures to spruce up Hampton Court Palace and his other royal residences.

But why would the King spend a lot of money and energy to collect woven pictures to decorate his walls? What was behind these expensive wall hangings?

Tapestry making was huge industry in northern France and southern Netherlands during the Middle Ages and Renaissance. Tapestry is a form of textile art created by skilled craftsmen. The pieces were woven by hand on a weaving-loom. Weaving a tapestry required that each thread be carefully placed on the loom by hand. This painstaking process allowed workers to create complex designs that included intricate features for people, animals, and plants. Usually the chain threads were made out of linen or Picardy wool. The striking threads were made of Italian silk or gold and silver threads imported from Cyprus. Textile workers and guilds flourished in Belgium and France, ad tapestries created there were exported all over Europe.

Tapestries were sometimes woven in sets. A set of tapestries often told a biblical or mythical story through a series of pictures. This art in woven tapestry was intended to produce illusions of what reality should be-a more intellectual, more scientific, more grand world. This world could follow the owner wherever he went, as tapestries were portable and could be transported from one residence to another.

Wealthy and powerful men collected tapestries because they could really impress visitors. Before he had to give Hampton Court to King Henry, Cardinal Wolsey sent London merchant Richard Gresham to Brussels with 1,000 marks to purchase the finest tapestries he could find. The Venetian ambassador told this story of his visit to Wolsey: “One has to traverse eight rooms before one reaches his audience chamber, and they are all hung with tapestry, which is changed once a week” (1).

In September 1528, King Henry became displeased with Wolsey’s work and took over Hampton Court Palace. King Henry embarked on an enormous rebuilding project, creating new kitchens, a Council Chamber, and a series of private rooms for himself. In addition, Henry rebuilt the Great Hall, which featured great walls for displaying tapestries. To decorate Hampton Court and other royal residences, Henry collected tapestries to communicate his wealth and power. The tapestries adorned such important public rooms as the Great Hall and the Great Watching Chamber.

One of the most famous series in Henry’s collection is the History of Abraham series, which he commissioned specifically for Hampton Court. This series was woven in Brussels about 1540 by Wilhelm Pannemaker to the designs of Bernard van Orley. The History of Abraham tapestries include ten separate pieces, each of which is approximately sixteen feet high and twenty-six feet wide. These tapestries are of amazing quality, featuring highly skilled weaving and a high metal thread count, with many gold and silver threads. In fact, the amount of gold makes them one of the most opulent products of the Brussels industry.

Because of the amount of gold and silver and the high quality of the workmanship, each tapestry is estimated to have cost Henry as much money as a fully fitted and staffed battleship. This means the entire set cost as much as a fleet of battleships. The Abraham tapestries are a good example of King Henry’s primary purpose in collecting tapestries: demonstrating his vast wealth to visitors from around the world. King Henry believed these tapestries would create a positive impression and convince all who came to Hampton Court and other palaces of his kingship.

King Henry was right about the Abraham tapestries being a symbol of wealth and power. Their influence lasted much longer than Henry did. About 100 years after Henry’s death, during the English Revolution, revolutionaries seized control of the country and executed King Charles I, and Oliver Cromwell ruled as Lord Protector. Much of the royal property was sold to the highest bidder. But the Abraham tapestries were worth so much money, he was unable to sell them. They remained in the possession of Oliver Cromwell at Hampton Court. Like the rest of his possessions, they returned to ownership of the crown when the monarchy was restored. These tapestries were selected to adorn the walls of Westminster Abbey at the coronation of King James II in 1685.

The choice of the Abraham tapestries, commissioned by Henry VIII in 1540, to celebrate the restoration of the monarchy more than 100 years later demonstrates their significance as a symbol of royalty and power. Although Henry VIII could not have understood their full historic significance, he did understand the impact of tapestries on his perception as king. Hampton Court Palace was a favorite residence of King Henry. He made it a great symbol of his royalty and the strength of the Tudor dynasty. The magnificent tapestries that adorned the palace walls during his reign were a fitting symbol of the wealth, wisdom, and royalty of King Henry VIII. For him, tapestries were much more than decorations or insulation. They were literally the embodiment of his royal image.

1. Hedley, O. (1971) Hampton Court Palace. London: Pitkin Pictorials.

How to Hire the Best Forex Signal Provider?

If you have been working in or in relation with the Forex trading market, then you will know that this happens to be one of the most lucrative businesses existing, with huge possibilities of getting decent returns from your investments. At the same time, however, the possibility of losing your money due to ill-fated decisions is also high. You need to have your finger on the beating pulse of the currency market in order to make it big in this niche business. Sounds like navigating a minefield right? A Forex signal provider can make this job easier for you – helping you plan your every move in the Forex marketplace. With a reliable signal provider, you can let go of all your anxiety and take the bull that is Forex trading by its horns. How to hire the best Forex signal provider, you may ask? Here is a list of questions that will help you in making this decision.

How do they generate Forex trading signals?

There are two types of signal providers out there – one that uses Forex trading software to analyse market movements and generate signals purely on the basis of technical algorithms and those who take the services of experts and analysts that use a mixture of methods to come up with their trading tips. Depending upon human experience and knowledge is always better when it comes to trading in currencies. Choose a company that at least, uses a combination of software and human analysis to generate signals.

What has their past performance been like?

You will find many Forex signal providers in the market, bragging about how they offer their clients with high yields, but if they cannot back up their claims with a successful performance record, you should steer clear of them right away. There are ranking sites available on the web that legitimately analyse the performance of different Forex signal providers and rate them on the basis of their track record. Make sure you consult these too and only select a company that has a proven history of consistent performance in helping clients with making profits on the Forex market.

How fast are their signals delivered to clients?

In Forex trading, each second is crucial. There are times when currency levels move up and down several times in the span of just an hour. Some signals are valid for only a few minutes so the faster you can open a trade, the more chances are that you will make a profit or avoid a humungous loss. Therefore, choosing a signal provider that is prompt and consistent with their delivery timelines is crucial. Remember to evaluate this aspect during their demo service period to get a better idea of whether they are reliable or not.

The above points should definitely help you in making the right choice in terms of the best Forex signal provider for your trading decisions. All the best with your endeavours!