Mnikolic Investment Research
intelligent trading algorithms™
Mnikolic Investment Research
intelligent trading algorithms™

ChartVPS is a division of mnikolic that provides specially-designed, high-performance VPS service to financial traders. In addition to network and server monitoring software, all ChartVPS subscribers also have access to chart analysis tools, at no additional charge. These tools have been developed exclusively for ChartVPS and represent what we found to be versatile and profitable forms of technical analysis. If you're a ChartVPS subscriber log-in here to download all currently available (and future) chart analysis tools.

UVOL-DVOL Delta™

UVOL-DVOL Delta tracks the difference (and momentum) between stocks ticking up (uptrending) and ticking down (downtrending) in the New York Stock Exchange (NYSE). When the UVOL-DVOL Delta oscillator line/histogram diverges from price action, especially that of a broad market index like S&P 500 (SPY, ES, etc.), it is signaling a potential reversal. For example, if UVOL-DVOL Delta is uptrending and price downtrending a potential bullish reversal is forming while the inverse relationship (price up, delta down) signals a potential bearish reversal. The SPDR Dow Jones Industrial Average ETF (DIA) 3-minute chart below shows the bearish divergence between price and UVOL-DVOL Delta histogram - the former kept climbing higher while the latter stayed flat and even declined. Bearish reversal followed shortly after.

The UVOL-DVOL Delta add-on also includes the option to display the momentum (rate of charge) of uptrending to downtrending stocks, which has the ability to forecast a reversal faster than numerical difference alone. To activate the momentum mode set UVOL-DVOL Delta's parameter Rate_of_Change to true. The SPDR S&P 500 ETF (SPY) 1-minute chart below demonstrates the aforementioned UVOL-DVOL Delta strategy in intraday trading. While SPY kept going lower, the UVOL-DVOL Delta momentum histogram kept climbing higher, indicating a potential bullish reversal in price action.

Finally, UVOL-DVOL Delta also includes the option to display the oscillator average, which can be used to gauge underlying market sentiment. If UVOL-DVOL histogram is above its average, the sentiment is bullish, if under, bearish. The iShares Russell 2000 ETF (IWM) 1-minute chart shows UVOL-DVOL Delta's average and sentiment benchmarking in action: histogram above the average line accurately followed bullish action and inverse for bearish.


More tools coming in November/December 2017 including Tick Delta and TradeBuilder Community Edition. These tools will come as add-ons for platforms most commonly used by our clients, namely TradeStation, MultiCharts, Metatrader, and Ninjatrader.


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