Using spreadsheet to produce VA indicators (Volume Accumulation/Distribution Oscillator)

Stock Exchange and Market Analysis

Technical Analysis (23)

Volume of the long-short ratio net indicator VA (Volume Accumulation / Distribution Oscillator) also known as VA/D, VA-Osc or modified OBV (Ref. 1 ) is an energy tide OBV advanced modification indices , mainly used to improve OBV does not reflect the shortcomings of the day between the highest and the lowest closing price of the ability to spread the amount implied , an important indicator used to determine the trend as .

​Figure.1 The candlestick with OBV, VA and volume indicator

    OBV indicator in some cases there may be a distortion , for example , because the OBV is now, according to the closing price the day of ups and downs determine the volume to be taken as positive or negative , if the plate potential share price the day most of the time been low circling , closing low was able to stay there and finally pulled up to the flat plate was up to close , or vice versa , the disk to maintain a strong end it was down close to black , both of which make OBV indicator severe distortion , particularly a sudden The rumors caused a huge change in the volume of transactions , but it could not reflect the true strength and weakness of the disk . The net long-term ratio VA of the volume was compared with the highest price and the closing price of the day , so that the strength of the trading can also be counted. In the amount of energy , this allows VA to more accurately reflect the long and short market .
  Next, let us according to VA import mathematical formulas Excel spreadsheet :
    VAO_t = V_t * ( ( C_t – L_t ) - ( H_t – C_t ) ) / ( H_t – L_t )
  Where :
    VAO _t : net volume of long and short volume onday t , Volume Accumulation Oscillator
    V _t , C _t , H _t & L _t : a first t trading volume , closing price , the highest price & lowest
    VA _t = VA _t-1 + VAO _t
    VA _t : first t Amended type OBV indicator , Volume Accumulation / Distribution
    The VA indicator introduces the highest and lowest price of the day as the reference value . When the market pulls from the lowest price to the closing price , it represents the buying strength (C _t – L _t ) that the bulls can perform ; conversely , if the stock price falls from the highest price closing price is also not to exhibit short whipped pressure strength stock (H _t - C _t .) and according to the result of long and short pull ( i.e. the difference between the two highest net difference between the lowest ratio ) determines the VAO of Size and positive and negative values , so keenly predict the positive and negative changes in the market volume of the day , and use this VA as a correction indicator of the OBV energy tide . Generally speaking , since VA is a quantitative energy indicator , if you look at this single The rise and fall of the indicator is not very meaningful , usually with candlestick chart observes the trend of the curve to play the effect of predicting the market . We often say that the quantity is the leading indicator of the price . From the mutual reflection or the reverse deviation between the VA and the stock price , it can be used to discriminate or even predict the future disk. Changes in potential . As for its application principles, it can be classified into the following points for reference :
1. When the VA curve is on the rise , but the market is falling, it indicates that there is a gradual buying , which is a signal to prepare for the opportunity to enter the market .
2. When the VA curve shows a downward trend , but the market is rising, it means that the buying on the market is starting to be high and dangerous , and it is a signal to play in time .
3. When the VA indicator rises in tandem with the stock price , when the pace is firmer, it indicates that the market is stronger and is a buy signal .
4. When the VA indicator and the stock price rise synchronously , but the VA rises sharply , it means that the purchase has been fully involved , and then the fear is not enough . The so-called large amount of heads , the head will be large , the exit signal has emerged .
5. When VA form N -shaped rising curve , and the wave front to break through the high point , represents a long darling , shares continued up high probability , buy signal . Contrary , when the VA was N -shaped curve down , and down Breaking a wave of lows , indicating that the bearish momentum is arrogant , the stock price continues to go down to the bottom of the opportunity , is a short- selling signal .
6. When the market is in the consolidation stage , the trend of VA observation will be a good leading indicator . If VA breaks through the regional high point at this time , the buy signal appears . The same reason , if VA falls below the regional low point At the bottom of the valley , the sell signal emerges .
7. When the VA starts to change from a negative value to a positive value , indicating that the market buying gas starts to return , you can consider preparing to start doing more . Conversely , when the VA changes from a positive value to a negative value , the market buying gas gradually collapses , and the short- selling gas is beginning. Growing up , you can start shorting backhand .
8. VA at the close ups and downs in the stop price , still with OBV as distorted phenomenon , because in the time when a strong stock limit price , investors usually expect the market outlook will continue to rally while scaling back shares Wait and see , resulting in higher stock prices, but the more infinite results . Therefore, there are market restrictions on the limit , in the use of VA indicators must take into account the distortion of closing and closing .
  Finally, in order to facilitate the reader to use the VA indicator , the author still uses the model of Juyang (template), and continues to produce the analysis sample in Excel format for readers' reference :

template23.xlsx

  This sample addition to providing "historical stock" spreadsheet OBV and VA reference index outside , provided in the second spreadsheet "strands map" K chart , daily , OBV and VA trend chart for reference . The If you have any mistakes, 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