Long Term Update: TradeHill Weekly Chart

After a while i come back to check how is going this exchange founded by Jered Kenna in June. The volume increased after the first two months of sluggish activity; also here we have a confirmed buy signal from the inverse RSI fisher transform indicator and the weekly moving average that reversed this week.

Compared to the MtGox the price action is more stable because volatility doesn’t change so much like in the other one japanese exchange, probably because large players aren’t trading at Tradehill.

Recently i’m starting to observe better the volume activity on these bitcoin exchanges (virwox included) instead of looking only the MtGox. It is important, as i said in the bitcoin forum yesterday, to observe the Net Volume and not only the volume raw value. To compute the Net Volume we should do the difference beetween volume made on an Uptick and volume made on a Downtick for a particular bar (daily weekly or whatever you want). So watching carefully the net volume and how it develops with the pass of time is possible to better understand if this pressure is positive or negative and where it is headed. In this particular case, at TradeHill, the net volume started to become positive well before the market reversal giving to the smart investor a nice hedge.

At the moment the only way to compute the Net Volume is using the Sierrachart platform and the plugin made by Slush to grab data from bitcoincharts.com , then you can add to the chart the uptick downtick indicator, eventually export the data to excel for further data processing.



5 thoughts on “Long Term Update: TradeHill Weekly Chart

  1. adsense

    Could you please give us more details about that kind of volume analysis? i’m interested because volume analysis is the technical analysis technique of assessing the health of a trend, is also one of the oldest trading indicators in the market.

    1. Enky

      It is a way to measure the supply/demand otherwise impossible to do looking only the total volume per bar.
      Uptick volume can be used in momentum trading or to be analyzed as resistance bands. In a scenario in which ticks are increasing, investors may look at a security as having more buyer demand than the number of shares being sold. This is a bullish strategy that depends on the continuous rise in prices. You should look also for divergence when you have a strong negative net volume (more volume made on downtick) and a bullish price bar, this happened for example, using weekly bar, in june when we have had big volume made on downtick while at the same time the market touched the all time high at 32$, bearish divergence that marked the start of a long downfall.

      1. adsense

        Thanks for the answer, i’ll look in sierrachart how to plot downtick and uptick volume and i’ll try to find a way to compute the difference or net volume as you call it.

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