How to Identify TSV Divergence & Convergence
Time Segmented Volume TSV is a rare volume oscillator which provides leading indicator signals that are invaluable to short-term trading of stocks. Applicable styles of trading include Swing Trading, Momentum Trading, Position Trading, and Day Trading. As the Market Structure has changed exponentially in the past decade, Time Segmented Volume has become an even more powerful Worden Bros. TC2000 indicator for leading stock price movement.
When a volume indicator “leads price,” it is often diverging, or moving in the opposite direction of price. This leading quality of Time Segmented Volume is one of its best features.
Time Segmented Volume has many signal patterns you can learn. As you become more familiar with its subtler signal nuances, its leading qualities can help you enter the stock sooner in a run and exit almost at the high of the run. The leading signal patterns of Time Segmented Volume are easily seen once you know what to look for and how to understand the dynamics of Time Segmented Volume and the intent of the indicator writer.
Don Worden wrote Time Segmented Volume and it remains one of his best efforts in stock indicator writing. He wrote many indicators for the professional side of the market before starting the Worden Bros. Charting Software company years ago, which is now TC2000.
Time Segmented Volume has a totally unique formula that is cumulative rather than average-based. This keeps the line indicator from jumping around when data is dropped from the formula, as is the case in most moving average-based formulas.
Martha Stokes CMT
TechniTrader technical analysis using a TC2000 chart, courtesy of Worden Bros.
Chartered Market Technician
Instructor & Developer of TechniTrader Stock & Option Courses
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