Time Segmented Volume®
A proprietary technical indicator developed by Worden Brothers, Inc. TSV is an oscillator, which is calculated by comparing various time segments of both price and volume. TSV essentially measures the amount of money flowing in or out of a particular stock. The horizontal line in the middle, which extends across the entire length of the indicator window, represents the zero line. When TSV crosses up through the zero line it signals positive accumulation or buying pressure. This action is considered bullish. Conversely, when TSV crosses below the zero line it indicates distribution or selling pressure, which typically precedes a move down in price.
Another important thing to look for when interpreting TSV is a contradiction of trends between price and TSV. Look for positive or negative divergences between price and TSV in order to determine potential tops and bottoms. Several consecutive divergences increase the reliability factor in trying to pinpoint price reversals. For instance, if price has been making successively higher highs while TSV has been making successively lower highs, this would constitute a series of negative divergences. This would be an indication of a possible top.
TC2000 gives you the ability to calculate a TSV on a wide variety of moving averages, which simply allows you to smooth the indicator, thereby filtering out the less significant swings. You will notice that as you increase the value of the moving average (and this applies to any indicator, not just TSV) the result is a smoothing effect. However, there is a trade-off. As you increase the length of the moving average, the indicator becomes less sensitive to daily fluctuations. And as a result, the indicator will have a greater tendency to lag price.
One of the new features of this indicator is the ability to calculate a moving average of another moving average. This addition has made TSV more effective and easier to use. Now you can calculate a moving average of an already smoothed TSV and use it much in the same way the MACD indicator is used. Positive and negative TSV crossovers are one more thing to consider when trying to form an opinion on a particular stock or market index.
Short Term Trading: TSV period between 9 and 12
Intermediate Term Trading: TSV period between 18 and 25
Long Term Trading: TSV period between 35 and 45
|MA of TSV
|MA of TSV
tAVG(tAVG(TSV1.z, x), y)
x is the period which must be an integer.
y is the period of the moving average applied to TSV which must be an integer.
z is the offset. An offset of 1 returns the value for the previous bar instead of the current bar.
t is the average type. Leave blank for Simple, X for Exponential, F for Front Weighted, H for Hull.
The current 38 period simple TSV can be written as follows.
But we can leave out the offset parameter because it is for the current bar.
The 19 period simple moving average of the simple TSV38 can be written as follows.
An 38 period exponential TSV is created by taking an 18 period exponential moving average of the raw TSV.
If you wanted the value for three bars ago you would set the optional simple moving average parameter to 1 and the offset parameter to 3.
The 19 period exponential moving average of a 38 period exponential TSV could be written as follows.
XAVG(XAVG(TSV, 38), 19)