Normalizing Volume by Spread for Trading Experiments

Summary

This indicator modification takes a standard volume measure and divides it by the spread. The author removed the original color-changing behavior because it was considered unhelpful after the transformation, then added an option to turn spread adjustment on or off. The stated purpose is experimentation when building expert advisors and providing another parameter to optimize.

The note offers no formula details about the volume input, guidance for interpreting the resulting values, or tests showing that spread-normalized volume is informative. It explicitly leaves the indicator's usefulness unresolved. Traders should therefore treat it as an experimental feature idea rather than an established signal, and would need to define the spread and volume conventions and evaluate the indicator empirically before relying on it.

Key ideas

• The modification divides a volume indicator by the spread.
• An input option allows users to enable or disable spread adjustment.
• The change is intended for expert-advisor experiments and parameter optimization.
• The note provides no evidence that the transformed indicator improves trading results.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.