** Ultimate Volume System **

*** “Ultimate Volume System” by 7of9 for BRT ***

“A comprehensive volume based study under development for almost 2 years and hundreds of hours in code refinement and back-testing”

*The buying/selling separation in this study is based on the "Internal Bar Strength (IBS)" formula*

**Actual buying/selling data does not exist in ThinkOrSwim, the "Internal Bar Strength (IBS)" formula is the best and really the only way to achieve buy/sell separation**

***For illustrative purposes only***

****Not a recommendation of a specific security or investment strategy****

This system has been designed to be very user customizable with 14 adjustable user inputs

For a description of each user input, just click on the "?" next to each input in Edit Studies

Features (Volume Bars and Smart Average lines):

1. Volume bars individually separate the Buying vs Selling volume in real time (green = buying / red = selling)

2. There are two "Smart Volume" average lines that show the average volume over a set number of bars and change colors:

If the average buy volume is > 50% the color is green and <= 50% the color is red

The default setting for Smart Volume average line #1 (solid line) is a length of 6 bars for a short term perspective

The default setting for Smart Volume average line #2 (dashed line) is a length of 30 bars for a longer perspective

Note: the crossing of these two average lines may also indicate an increase or decrease in trading interest

(The length settings for these Smart Volume average lines can be changed in user configuration)

Features (Study Smart Labels, from left to right):

1. The "Today" volume label shows the total volume so far today and changes colors based on the last 30 days average:

(gray = below average, orange = average to 199%, green = above 200%)

(The default setting of 200% can be changed in user configuration)

2. The "CurBar" volume label shows the volume of the current bar and changes colors based on the last 30 bars average:

gray = below average, yellow = average to 199%, green = above 200%

(The default setting of 200% can be changed in user configuration)

These next three labels were designed to be a leading confirmation of direction

3. The "CurBarSell" % label shows the current bar sell percent and changes colors:

(< 45% sell = green, > 55% sell = red, 45% to 55% = gray)

4. The "6BarAvgSell" % label shows the current Smart Average sell % over the last 6 bars and changes colors:

(< 45% sell = green, > 55% sell = red, 45% to 55% = gray)

(The default length setting of 6 bars can be changed in user configuration)

5. The "30BarAvgSell" % label shows the current Smart Average sell % over the last 30 bars and changes colors:

(< 45% sell = green, > 55% sell = red, 45% to 55% = gray)

(The default length setting of 30 bars can be changed in user configuration)

Features (Relative Volume spike vertical lines):

1. When there is a Relative Volume spike over the standard threshold of "2", the study will produce a vertical dashed line

(The default threshold setting of 2 can be changed in user configuration)

Note: a “Relative Volume” spike line will not be produced unless the parameters of #2 are also met

2. When a RVOL spike occurs and before a vertical line signal is produced, the study will analyze the current volume bar and assign that volume bar's "Selling Volume %" to that vertical line and also assigns a color to the line based on the input settings:

(If the sell volume is <= 25% the line is green, if the sell volume is >= 75% the line is red)

Note: RVOL does not in itself indicate direction

This system is programmed to make a "best attempt" at determining direction by restricting the line to a very high or very low percentage of selling volume as described above

The “Relative Volume” Spike feature of this system is not “necessarily” always an entry or exit signal

• It can be an entry or exit signal

• It can be a possible reversal signal
  

• It can be a position support signal
  

• But it will always be a “Volatility” or “Liquidity” signal

Quite often, a signal will trigger and then there will be a trap or stop shakeout immediately following and then a strong reversal

This happens quite often just before a trend reversal

(The default "Selling Volume" setting of 75% can be changed in user configuration - The higher the setting, the more restrictive the RVOL indicator will be)

*** The importance of high “Relative Volume” (RVOL) in stock trading ***

A high RVOL number is correlated with volatility, which in turn impacts your returns, i.e. profitability

RVOL over the deviation of 2 is considered to be high

A stock's volume has two aspects - "Absolute Volume" and "Relative Volume" - They are not the same thing

If you are able to measure RVOL, you are able to know if the trading activity for a stock is increasing or not

Relative Volume is a ratio that is derived by comparing the current volume to the average volume over a given period length

RVOL is the key to understanding volume flows

It helps you understand if trading activity is higher or lower as compared to its normal trading behavior