Time Segmented Volume Signals from Price-Weighted Volume Changes
Summary
The indicator builds Time Segmented Volume (TSV) by summing volume-weighted close-to-close price changes over a configurable window. It compares the resulting oscillator with a simple moving average and marks potential long or short conditions according to whether TSV is above or below zero and the average. The default settings use a 13-period TSV and a 7-period average.
A positive TSV above its average is labeled as a long condition; a positive reading below the average is marked as a possible weakening long. Negative TSV below its average indicates a short condition, while a negative reading above its average signals possible short exhaustion. The description also notes that TSV and its average can straddle zero, and that near-zero oscillations may reflect consolidation. These are interpretive signals, not demonstrated performance results: the document provides no backtest, market-specific guidance, or validation of predictive power, and warns users to trade at their own risk.
Key ideas
- TSV sums volume-weighted close-to-close price changes across a selected lookback window.
- The indicator compares TSV with a moving average to categorize directional conditions.
- Positive TSV above its average is labeled as a potential long condition, while a falling positive reading may signal exhaustion.
- Negative TSV below its average is labeled as a potential short condition, while a rising negative reading may signal exhaustion.
- Near-zero oscillation and disagreement between TSV and its average can make trend interpretation uncertain.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.