Volume reversal methods / tool

CDS2233

Hi, How are you?
Mark Leibovit has a Volume Reversal tool add-in to Metastock and Tradestation but not for Stockcharts.com.
Do we have a similar tool (in case anyone knows his VR tool) or similar method?

P.s. I don't know much about scanning in any way, or whether its worth going through the hard uphill to learn scanning to get the same results on a consistent basis. I guess it wouldn't be much help to attempt an answer if you aren't familiar with his VR tool. Thanks

markd

Hi @CDS2233 , I read his book, Trader's Book of Volume, some time ago. Leibovit's tools are proprietary so it's hard to know how comparable other public domain indicators might be. Elder's Force Index indicator is volume based, and you could probably reverse engineer something similar to VR with Force and MA crossovers if you play with the parameters long enough (I'm guessing his green and red signals are crossovers). If you like VR Sequential's presentation method, Elder's Impulse charts also use colored bars to indicate changes in bias, although they are price based, not volume based. I don't know if Leibovit has published performance numbers for his tools, or demonstrated how the tool works in real time in different markets. If he hasn't published numbers, it's hard to back test since he won't divulge the formula. Without independent verification, it's hard to know how effective they are really vs. how much is just selective representation.