Price-to-Volume Indicator Using a Moving Average
Summary
The document describes a simple price/volume indicator that divides price by volume and uses a simple moving average as its price input. It offers only a brief description of the calculation and does not specify a formula for the averaging period, signal thresholds, or how the indicator should be applied in a trading system.
The author reports finding no meaningful forecasting value in the indicator’s sign. No backtest, market, sample period, or performance evidence is provided, so the comment is an observation rather than a documented evaluation. The note may serve as a starting point for testing a price/volume feature, but it does not establish a usable strategy or demonstrate predictive power.
Key ideas
- The indicator is described as a variation on dividing price by volume.
- A simple moving average is used as the price input.
- The author reports no meaningful forecasting value in the sign.
- No test details or trading rules are supplied.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.