For years the volume aspect of the Wyckoff Wave was taken from the NYSE Composite Index.

This was simply because the Wave was calculated manually and combining the volumes of all the individual Wave stocks was cumbersome and extremely time consuming. But, it was tradition and traditions are hard to change.

When Craig Schroeder and I were beginning to develop the online data and charting service we decided to change tradition and designate the volume of the Wyckoff Wave as the total volume of each Wave stock.

Every 5 minutes we take the total, weighted price of each Wyckoff Wave stock and the total volume of all 12 Wave stocks. We use this data to determine or “call” each intra day wave throughout each trading day.

Additional calculations produce the numbers for the Optimism-Pessimism Index was well as the Technometer Force Index.

Craig and I both felt that by using the actual volume for the Wyckoff Wave stocks, this leading indicator index would be even more helpful to Wyckoff traders.

Filed under: General Observations

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