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Metastock Indicator Formula
Volume Adjustment Formula
MovAve:=Input("Moving Average # Periods",1,200,50);
VolMult:=Input("Multiplication Factor",1,5,2);
MaxVol:=VolMult*(Mov(VOLUME,MovAve,S));
AdjVol:=VOLUME-(VOLUME-MaxVol);
If(VOLUME>MaxVol,AdjVol,If(VOLUME<MaxVol,VOLUME,VOLUME));
Note: This is the volume adjustment we use on the main
charts on the website and in the report. This helps eliminate the effect of volume spikes,
but does occasionally mean that the actual figure is not the actual volume for the day.
I do not feel this matters, as if the volume is adjusted it means it has been above the average, and
at the end of the day, all I look for is t's relationship to the average. The formula calculates
the value of volume. If the volume is higher than say two times the 50 day moving average, it
only counts the volume at the level of two times the moving average. Eg. If the volume was
1,000,000 and the 50 day average was 200,000, then it would only calculate the volume as 400,000 (2 x the
moving average). If the next day volume was 350,000 it would be calculated ss 350,000 as it is not more than
2 x the Moving Average (400,000).