What determines a security’s value? Price is the agreement to exchange despite the possible disagreement in value. Price is the conviction, emotion, and volition of investors. It is not a constant but is influenced by information, opinions, and emotions over time. represents this degree of conviction and is the embodiment of information and opinions flowing through investor channels. It is the asymmetry between the being forced through supply (offers) and demand (bids) that facilitates price change. Quantifying the extent of asymmetry between price trends and the corresponding flows is a primary objective of analysis. analysis research reveals that often leads price but may also be used to confirm the present price trend.
Trend thrust indicator
The trend thrust indicator ( TTI ), an enhanced version of the convergence/divergence (VW-Macd) indicator, was introduced in Buff Pelz Dormeier's book 'Investing With Analysis'. The TTI uses a multiplier in unique ways to exaggerate the impact of on volume-weighted moving averages. Like the VW-Macd, the TTI uses volume-weighted moving averages as opposed to exponential moving averages. Volume-weighted averages weigh closing prices proportionally to the traded during each time period, so the TTI gives greater emphasis to those price trends with greater and less emphasis to time periods with lighter . In the February 2001 issue of Stocks & , I showed that volume-weighted moving averages (Buff averages, or Vwmas) improve responsiveness while increasing reliability of simple moving averages.
Like the and VW-Macd, the TTI calculates a spread by subtracting the short (fast) average from the long (slow) average. This spread combined with a multiplier creates the Buff spread