by fortcentral » Tue Jan 22, 2019 6:35 am
Dear Apprentice,
Please find suggested modification to make the indicator a little more user friendly. As summarised in previous posts, the "squat" is a directional indicator and is based on the range of a given price bar and the volume that occurs while that range is being created.
The "squat" is based on the idea that high volume and little price movement, indicates substantial support or resistance. Once the required conditions for a "squat" are satisfied, it would be great to have a "flag/marker" above the price bar to highlight the "squat". An overlay of a small flag (say a coloured triangle or an arrow) would make it really easy to identify the "squat" and still keep the display uncluttered.
User parameters:
1) %volume - the percentage increase in tick volume compared to the previous bar, which will generate the "squat"
2) Colour option for the "squat" marker
--> Squat calculation
Squat is represented with a marker above the price bar when both of the following conditions are satisfied:
1) At least a 30% increase in (TIC) volume and
2) A smaller "MFI" than the previous price bar
MFI = [(range of bar)/volume]
Note:
1) "range of bar" is the price range of the bar in tics, pips or points -> range=(high-low)
2) "volume" is the (TIC) volume.
Not sure if code for "real.volume" based on the FXCM "Real Volume Transactions" indicator is now available but otherwise whatever feed for volume volume data is available in the price chart could be used. I normally only run the FXCM "real.volume" indicator for some specific charts and particular timeframes such as 1-min or 5-min. Volume data gets averaged on larger time frame charts and the "squat" is not so useful then.