Developing VA

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Cstroot
Last seen: 5 days 7 hours ago
Joined: 01/10/2017 - 16:39
Developing VA

Within the PROF indicator you are able to draw developing value areas for the session. I would like to be able to draw a developing value area for N bars back. This would be a more dynamic value area. How would I go about doing this?

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Eddy
Last seen: 1 day 7 hours ago
Joined: 03/01/2024 - 15:25
"Average Bars" feature applied to developing VA

Hello,
To perform this type of analysis (which cannot be performed on a typical chart periodicity), InvestorRT introduced back in 2012 (in version 10.5) a feature called "Average Bars" (It might also have been named "Cumulative Bars").

In effect, this is a layered periodicity that essentially wraps multiple bars into one. So each bar will represent your original periodicity's last X cumulative bars.
Please watch this video  (created for another subscriber seeking to perform such "dynamic profile" type of analysis) to familiarise yourself with this feature.
https://www.linnsoft.com/videos/average-bars
This forum topic also provides another example of the potential use of such periodicity, 
https://www.linnsoft.com/topic/5-bars-vpoc-average-bars

Please note that this feature makes it possible to carry out very powerful "dynamic" studies. Indeed, it can be applied to any original bar periodicity (time bars, tick, range or volume bars, Renko, etc) and you can then use the usual IRT indicator toolkit to apply any technical analysis studies on these cumulative bars.

Of course, do not forget that you need to associate such studies with the "layered instrument" (that will be referenced for example as "@ES #(5m AVG)" )

So I just created the following chart - This is a 1 min chart, looking back at the last 10 cumulative bars, and displaying the corresponding value area range (in blue) - You may play with the show/hide buttons to display (or not) the corresponding VA range or full profile, the candlestick, or the colored up/down VPOC.

https://www.linnsoft.com/charts/ef-developingva-lastxbar-es

I hope this will be helpful for your research

Eddy