SVAPO Indicator On Yanlord

SVAPO is an indicator presented by Sylvain Vervoort in the Nov 07 issue of the Stocks & Commodities magazine.

This indicator combines price and volume information into a Short-Term Volume And Price Oscillator.

The Metastock code for the indicator is given below:

{calculate the heikin ashi closing average haCl and get the input variables}

haO:=(Ref((O+H+L+C)/4,-1) + PREV)/2;

haCl:=((O+H+L+C)/4+haO+Max((O+H+L+C)/4,Max(H,haO))+Min((O+H+L+C)/4,Min(L,haO)))/4;

period:= Input("SVAPO period :", 2, 20, 8);

cutoff:= Input("Minimum %o price change :",0,10,1);

{Inputs for standard deviation bands}

devH:= Input("Standard Deviation High :", 0.1, 5, 1.5);

devL:= Input("Standard Deviation Low :", 0.1, 5, 1.3);

stdevper:= Input("Standard Deviation Period :", 1, 200, 100);

{Smooth HaCl closing price}

haC:=Tema(haCl,period/1.6);

{Medium term MA of Volume to limit extremes and division factor}

vave:=Ref(Mov(V,period*5,S),-1);

vmax:=vave*2;

vc:=If(V(Ref(haC,-1)*(1+cutoff/1000)) AND Alert(vtr>=Ref(vtr,-1),2), vc, If(haC<(Ref(haC,-1)*(1-cutoff/1000)) AND Alert(vtr>Ref(vtr,-1),2),-vc,0)),period)/(vave+1),period);

devH*Stdev(SVAPO,stdevper);

-devL*Stdev(SVAPO,stdevper);

zeroref:=0;

zeroref;

SVAPO;


The highlights of this indicator are as follows:

1. In an uptrend market, price and volume are moving up. When calculating the oscillator, volume will be added


2. In a downtrend market, price goes down while volume goes up. When calculating the oscillator, volume will be subtracted.


3. When volume is moving down and price is in consolidation phase moving in either direction, volume will not be used to calculate the oscillator.


4. Additional price and volume smoothing is done using triple exponential moving average (TEMA).
   

Let’s look at Yanlord as a case study.

Entry Rules :

1. SVAPO (Red line) must be below the lower boundary (Green line)


2. Today’s SVAPO must be greater than yesterday’s SVAPO


3. If condition 1 and 2 are true, buy at tomorrow’s opening price.

Exit Rules:

1. Exit the trade after 3 days.

The trading record is as follows:

Entry Date	Entry Price	Exit Date	Exit Price	% Change	Bars Held	Draw Down %	Max Gain %
11/23/2006	1.73	11/28/2006	1.95	12.72	3	0	19.0751
1/10/2007	2.46	1/15/2007	2.43	-1.22	3	-3.6585	0
1/24/2007	2.36	1/29/2007	2.19	-7.2	3	-8.8983	0.8475
2/14/2007	2.08	2/21/2007	2.13	2.4	3	0	3.8462
3/6/2007	1.78	3/9/2007	1.95	9.55	3	0	9.5506
3/9/2007	1.95	3/14/2007	2	2.56	3	-2.5641	6.1538
4/26/2007	2.34	5/2/2007	2.38	1.71	3	-1.7094	2.1368
7/31/2007	3.24	8/3/2007	3.26	0.62	3	-1.8519	3.7037
8/3/2007	3.26	8/8/2007	3.24	-0.61	3	-2.454	4.2945
8/21/2007	2.79	8/24/2007	2.94	5.38	3	0	7.5269
9/21/2007	3.2	9/26/2007	3.22	0.62	3	-2.5	1.25
10/19/2007	3.7	10/24/2007	3.62	-2.16	3	-9.1892	0
11/15/2007	3.7	11/20/2007	3.42	-7.57	3	-7.5676	1.0811
1/11/2008	2.77	1/16/2008	2.65	-4.33	3	-6.4982	1.083
1/25/2008	2.48	1/30/2008	2.6	4.84	3	0	7.6613
3/11/2008	2.08	3/14/2008	1.95	-6.25	3	-9.1346	9.6154
3/25/2008	1.8	3/28/2008	2.28	26.67	3	0	27.7778
4/23/2008	2.31	Open	Open	4.33	1	-1.7316	6.4935

There are a total of 18 trades with 11 winners and 7 losers.