Poiv

Larry Williams POIV A/D [tradeviZion]Larry Williams' POIV A/D - Release Notes v1.0 ================================================= Release Date: 01 April 2025 OVERVIEW -------- The Larry Williams POIV A/D (Price, Open Interest, Volume Accumulation/Distribution) indicator implements Williams' original formula while adding advanced divergence detection capabilities. This powerful tool combines price movement, open interest, and volume data to identify potential trend reversals and continuations. FEATURES -------- - Implements Larry Williams' original POIV A/D formula - Divergence detection system: * Regular divergences for trend reversal signals * Hidden divergences for trend continuation signals - Fast Mode option for earlier pivot detection - Customizable sensitivity for divergence filtering - Dynamic color visualization based on indicator direction - Adjustable smoothing to reduce noise - Automatic fallback to OBV when Open Interest is unavailable FORMULA ------- POIV A/D = CumulativeSum(Open Interest * (Close - Close ) / (True High - True Low)) + OBV Where: - Open Interest: Current period's open interest - Close - Close : Price change from previous period - True High - True Low: True Range - OBV: On Balance Volume DIVERGENCE TYPES --------------- 1. Regular Divergences (Reversal Signals): - Bullish: Price makes lower lows while indicator makes higher lows - Bearish: Price makes higher highs while indicator makes lower highs 2. Hidden Divergences (Continuation Signals): - Bullish: Price makes higher lows while indicator makes lower lows - Bearish: Price makes lower highs while indicator makes higher highs REQUIREMENTS ----------- - Works best with futures and other instruments that provide Open Interest data - Automatically adapts to work with any instrument by using OBV when OI is unavailable USAGE GUIDE ----------- 1. Apply the indicator to any chart 2. Configure settings: - Adjust sensitivity for divergence detection - Enable/disable Fast Mode for earlier signals - Customize visual settings as needed 3. Look for divergence signals: - Regular divergences for potential trend reversals - Hidden divergences for trend continuation opportunities 4. Use the alerts system for automated divergence detection KNOWN LIMITATIONS ---------------- - Requires Open Interest data for full functionality - Fast Mode may generate more signals but with lower reliability ACKNOWLEDGEMENTS --------------- This indicator is based on Larry Williams' work on Open Interest analysis. The implementation includes additional features for divergence detection while maintaining the integrity of the original formula.

Indicator

MS POIV This indicator was introduced by Larry Williams in 2007 and is very similar to the well known OBV indicator. As such, it should be examined for convergence and divergence with the price trend. The interpretation can be done using the Wyckoff principles. * Price rises, POIV stays behind => no subsequent demand * Price meets resistance, POIV reaches new highs => supply (distribution) in the background * Price and POIV rise synchronously => price trend is intact These statements can of course be applied correspondingly to falling prices. Larry Williams wrote for explanation: Despite the problem, volume indictors have proven their worth, but while it is a good idea to watch the cumulative flow of buying and selling pressure, you should not assign all of this buying and selling to bulls and bears. Combined with other concepts, such as keying off the open, we can focus on something more germane to trading based just on volume, or what some might consider related volatility indicators, such as daily ranges. Futures traders can consider at least one solution to this problem: open interest. Open interest is the number of outstanding contracts in a particular market. (...)) The formula is calculating the cumulative sum of open interest times the net change in price, divided by the true range. We then add the OBV value to this cumulative sum. So we first take the net change in price (today’s close minus yesterday’s close) to get a percentage of where within the range the close was. Not all of the activity will be buying or selling; the market “tells” us what percentage of open interest goes to the buy or sell side. Not only that, it also means we are incorporating price and trend change into the formula. (...) One note of warning is necessary. The Williams POIV AD is a specific formula that compensates for the close within the range relationship, as well telling us how much OI to use, but it is an indicator, not a trading system. In practice, it is useful to confirm a trade or to focus attention on a potential trade. It is not intended to stand as the sole reason to initiate a position in the market.

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