Up/Down Volume Ratio Slope (UDVRS)

Although the U/D Ratio is a powerful indicator, it is actually the change or slope of this ratio that signals a change in the stock price trend. If the slope of the U/D Ratio over n periods is increasing, the price of the stock is increasing on greater volume. Even better, if the slope of the U/D Ratio changes from negative (downward sloping) to positive (upward sloping), then enough buying action is coming into the stock to reverse the downward trend in the ratio.

Presentation

udvrSlope

Above is a Daily Candlestick Chart of Apple Computers (AAPL). The bold green line in the lower window pane represents the Up/Down Volume Ratio Slope as specified in the preferences below. A volume histogram for AAPL can be seen in the middle pane. The bold blue line in the top pane is a Moving Average overlaying the price data.

udvrSlopePrefs

  • Number of Periods
  • Regression Period
  • Line Color
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