PpSignal Koncorde By Inversiones en el MundoHow does the market work?
The market is moved by two types of investors, those called strong hands or sharks (agencies, funds, companies, banks, etc.) and weak hands or minnows (that is, us).
Minnows do not have the ability to manipulate a security, since our portfolio is limited, but we can enter and exit securities easily since we do not have much money.
Sharks can manipulate a security since they have a lot of shares and / or money, however, they cannot move easily since selling or buying such amount of money is very difficult for them.
So what can sharks do to buy or sell their shares? Well, he plays his game: Trying to make us believe that the company is cheap when they want to sell us their shares or make us believe that the company is expensive when they want to buy our shares. This manipulation is done in many ways, most of them through press news.
We, the minnows, cannot compete against the sharks, but we can find out what they are plotting (remember that they are slow moving their monstrous amounts of money) to get under them and imitate them. Better to be under the shark than in front of it.
How does Koncorde work?
Well, we already know how we should operate, but how do I know what the sharks are doing? Well, here the Koncorde indicator comes into play.
This indicator is made up of 6 indicators. 4 trend and 2 volume. The 2 for volume are the IVP (positive volume index) and the IVN (negative volume index). These two indicators are the interesting ones since they are programmed to proportionally attribute the volume traded between the strong hands (sharks) and the weak hands (minnows). To explain how the IVP and IVN work I will write a post since it is very interesting, but for this post, stay with what they do. Koncorde uses volume, therefore it cannot be used in Forex.
As for which temporality to use, the bigger the better, since at the end of the day what we are doing is data analysis and therefore the more data the better. I personally use it in daily candles.
And all this, how is it represented in the indicator? Its graphic representation consists of three overlapping layers and a red line.
Signal: Average represented with a red line
Mountain: It is the brown layer that indicates the price trend
Prado: It is the green layer that attributes the purchases or sales of the weak hands (the minnows)
Water: It is the blue layer that attributes the purchases or sales of strong hands (sharks)
When strong hands are below zero they are said to be selling while when they are above zero they are said to be buying. The same goes for weak hands. Generally, if strong hands are buying or selling, the price is lateralized (the Atlas indicator is very useful for this). The price movement is associated with the buying and selling that makes the hand weak.
Koncorde indicator at a glance shows us a lot of information
Meaning of each zone:
Blue area: strong hand. If it is positive it indicates accumulation and if it is negative distribution.
Green area: weak hand. If it is positive it indicates a purchase and if it is negative it indicates a sale.
Brown area: Indicates the trend and depends on the previous strong and weak hand values.
Red line: It is an exponential average that smoothes the trend indicated by the brown area.
Simple operating example:
Buy: When the mountain rises above the red line.
Sell: When Mountain goes below the red line.
This would be for long. To enter shorts would be the other way around.
thank to:
Imvccl
S&P Merval Index Volume Indicator (Shares, ARS, U$S CCL GGAL)S&P Merval Index Volume Indicator (Shares, ARS, U$S CCL GGAL)
◾ This indicator reflects a close estimate of the traded volume in the S&P Merval Index BCBA:IMV for nominal shares, traded money in ARS & USD using a financial FX rate.
◾ The constituents of the index "must meet minimum size and liquidity requirements" as it is been declared by S&P Dow Jones Indexes. On this version of the indicator were reflected the current set of stocks for the Index as of Monday, July 27, 2020 for actual and historical sessions.
◾ Eventually, there could be changes in consitutents as per the S&P Dow Jones Indexes classification and re-balance that will be reflected on this script or a new one.
◾ Aggregated volume of nominal shares for each of the stocks constitutents is multiplied by their closing prices to estimates the effective volume in ARS & adjusted by the FX rate with "Contado con Liquidación" FX rate closing session price.
◾ It serves as a dynamical volume indicator available for standard and customized timeframes. Provides an assertive look over trading activity which allows the analyst to measure effectively either resistance or support zones in Bull / Flat or Bear markets.
◾ Output of 10 trading days of effective volume was cross-checked with "IAMC Informe diario" www.iamc.com.ar the official daily report by the exchange ByMA (Bolsas y Mercados de Argentina).
1) Trading Sessions Dates
7/27/20; 7/23/20; 7/22/20; 7/21/20; 7/20/20; 7/16/20; 7/15/20; 7/14/20; 7/13/20
2) IAMC Informe Diario S&P Merval Index Effective volume (ARS) for each of 1)
$1309.4M; $1999.3M; $1691.1M; $1585.6M; $949.7M; $818.6M; $1010.4M; $962.3M; $1515.7M
3) Pine indicator S&P Merval Index Effective volume (ARS) for each 1)
$1294.6M; $1911.7M; $1691.3M; $1526.6M; $901.4M; $796.7M; $961.9M; $939.7M; $1404.7 M
4) Variance 3) | 2)
-1%; -4%; 0%; -4%; -5%; -3%; -5%; -2%; -7%
Average Deviation: -4%
Standard Deviation: 2%
* This quick analysis depicts that effective volume displayed may (or not) have a non significance variance over the real data reported by the National Exchange due to the script calculation.
* Thanks to Alan who helped me a lot with the code!
