The introduction of the stock technical indicators TAPI (Total Amount of Per Weighted Stock Index)

Stock Exchange and Market Analysis

Technical Analysis (25)

Turnover value index points ( TAPI - Total Amount of Per Weighted Stock Index) is part of the stock technical analysis of short-term indicators , mainly used judged the relationship between volume and price of the stock market. It takes to reflecting the strength of the stock market buying momentum and the opportunity to push up the stock price in the future . It is used in the market to represent the trading volume corresponding to each unit weighted stock price index , and for the individual stock is used to indicate the number of transactions corresponding to each dollar unit of the stock . In summary TAPI is used to reflect the investor's recognition of the current market weighted stock price index or stock price level ( Figure 1 ).

​Figure 1  The TAPI trend shown in candlestick chart

The calculation principle of the TAPI indicator is very simple , that is, the volume (The share number) is divided to the price (stock price), and the formula is as follows :
TAPI
  = Volume / Weighted Stock Index ( Brand )
  = Volume / stock close price  ( shares )
The TAPI cycle can be calculated on a daily , weekly or monthly basis . This article focuses on the short-term daily cycle . In addition, TAPI can be used in conjunction with the use of ' every transaction volume ' ( large market ) or ' number of transactions per share ' ( individual shares ) to describe the stock market (the following formula ).
TAPT
  = volume / number of transactions  ( Brand )
  = number of transactions / number of transactions ( individual share )
When TAPT larger representation single volume ( number of shares ) to expand , means that the investor shot funded , it is often classified as large ( foreign investment , investment trust or corporation ) index , while TAPI is called retail index . Due to chase high The killers are often retail investors , while the big players usually play the role of ignition , so the high point of TAPI is usually accompanied by the high point of the market . Once the TAPI trend is reversed, it can be used as a reference for selling signals . Conversely , the high point of TAPT is usually accompanied by the market downward point, so it can be used as a signal to enter the market . Since this article takes individual stocks as an example , the historical data obtained does not include the number of transactions on the day , so it is impossible to provide a trend chart for each volume for readers' reference .
As we all know , the volume is the price of leading indicators , changes in volume can often be observed as soon as possible to determine whether the stock has been a turning point . The TAPI based on per unit index ( or dollar unit) could push up the kinetic energy of the deal as a benchmark , while the volume impact to the market turnover has been included in the TAPI formula for correction , so it is more able to reflect the market's long and short-term data than the volume . In order to grasp the TAPI indicator , the characteristics it presents are as follows :
1. Since TAPI does not have a fixed high or low point , it is necessary to observe the trend within a certain period of time and set the historical high and low limit values ​​of the market or individual stocks . Once TAPI approaches the historical high point limit as the market goes higher , pay attention to the reversal down signal . On the contrary TAPI with the market's decline to historic lows when approaching the limit , pay attention to the rebound of the signal .
2. Since the amount of divalent leading indicator , rising volume rise , drop in price reduction is an inevitable result , the TAPI elevation substantially synchronized with the volume , and therefore under normal conditions , TAPI followed market ( or individual stocks ) going In the case of simultaneous amplification , indicating that the market is hot , the market is in a long stage , investors can actively enter the market . When TAPI follows the decline of the market ( or individual stocks ) , the market is quiet , the market is in a short stage , investors should be cautious and wait and see .
3. In the rising stage of the stock market , when the market ( the denominator of TAPI ) soars, the volume ( the numerator of TAPI ) is only slightly expanded , which makes the TAPI become smaller , causing divergence , and the potential may reverse near the end of top reversal( such as P2 point in Figure 1 ), shareholders should wait for the opportunity to profit-taking. In the same way , in the stock market downturn , when the market fell sharply, the volume of sales only slightly shrank , making TAPI reversely larger , which also caused divergence , representing The bottom rebound signal has been released , and the investor can wait for the opportunity to enter the market .
4. The end of the bull market rise segment , when the share price continued innovation , but TAPI can not synchronize record high , represents a market near the end of top level, market reversal may fall at any time , must be carefully observed and variable signal .
5. When the market falls short end segment , the stock continued lows, but TAPI is no longer synchronized dropping ( FIG. A P4 point ), represents the short side has weak strength , the bottom surfaced buying began to take over , to be carefully observed rebound signal .
6. When TAPI forms M or triple top at the high point of the stock market , it indicates that the kinetic energy is gradually depleted , and the probability of the market turning into shorts is greatly increased . Investors should take off their shares in a timely manner and take profits . If the stock price moves When the M head or the triple top appears , it is more likely to confirm the trend of the bears .
7. When TAPI lows in the stock W when at the bottom or triple bottom, represents the pressure in the short path whipped gradual weakening , the market turned into the bull's chances increase , investors should be ready funds ready to approach . If stock prices also occurred W bottom or triple bottom, it is more able to confirm the trend of the bulls .
8. Because TAPI is part of the retail index , therefore TAPI in the high reversal pattern on the market to determine the accuracy of the patterns to be more than the lows high .
9. There is no certain high or low point in TAPI . It is best to use it together with the market or stock index , candlestick chart and other technical indicators to increase the probability of prediction and reduce the risk of misalignment .
Although the above is the general rule of entering and exiting stock market, but because the calculation principle of TAPI index is too simple , it is more suitable for short-term operation analysis , and the stock property is different . It is better to observe the stock price trend chart of the subject matter for at least one year. The technical indicators should be appropriately revised . Finally, in order to facilitate the readers to use the TAPI indicators , the author will change the spreadsheet format of the public ( free of charge ) software LibreOffice in the future , and continue to make a similar version with the model of Juyang . Analytical samples of Excel format (*.ods) are for reader's reference :
Template25.ods
In addition to this sample in the "historical stock" spreadsheet TAPI the external reference index , the second spreadsheet candlestick graph , volume and TAPI trend chart for the reader . If left bad Please don't hesitate to correct me . Thank you !
In addition , the author made EXCEL spreadsheet for various indicators ( moving average , RSI, BIAS, stochastic KD line, William indicator, MACD, CDP and Bollinger band) for stock analysis , and further produced candlestick charts and other technical indicators on the same chart , interested readers can refer to Ref.1.
Reference (Ref):
1. Investment and financial notes - stock technical analysis