As I read Brian Shannon’s book Technical Analysis Using Multiple Timeframes, I began trying different implementations of a Volumetric Trendline. The result is the study you see here. The user enters the desired period and the study will plot a trendline that represents the linear volume based trend for that period. The trendlines update in real time as price/volume action changes. I experimented with various periods to see what appeared most useful and ultimately settled for 20, 55, 110, and 220 period lines. These numbers are essentially arbitrary and I recommend you experiment and find what works best for you. Also pictured is the DeMark Pressure Ratio and a custom multiple timeframe study built for one of our members.
thinkorswim Volumetric Trendline 12/16/09
Plots a trendline that represents the linear volume based trend for that period.
