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Direct MessagesDate/Time: Thu, 09 May 2024 19:15:31 +0000
[User Discussion] - Number Bars -Upgrade- Highlight Nonzero Bid&Ask Volume - Column 1 with extension line
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| [2018-03-05 18:21:18] |
| User71961 - Posts: 144 |
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This option (3rd from bottom) in the NumberBars study settings draws a horizontal line until a future bar intersection for "incomplete auctions"...where the volume at a price is nonzero at a high/low of a candle 3 upgrade ideas 1) option where the highlight+lines are based on one side of the high/low HAVING zero volume (the opposite of nonzero...also called a "complete auction"). This happened today at 11:48am in CL futures (volume at the high at 62.79 was 0 | 550). This reads as a large passive seller on the offer would not allow price above 62.79 and that become the local high. Events like this tend to be significant. This also reads as trapped longs at the highs. Both indicate a potential near term future resistance zone. 2) highlight/lines based on a net volume imbalance (where the user defines the imbalance threshold # required to trigger the highlight/line) on any price in the candle, not just the high/low (because sometimes it takes some choppy market activity before a level becomes significant). Default to 100? 3) can these lines (derived from data in the number bars study) be painted onto a regular candle chart (because the number bars study can only display a certain amount of bars on the screen...and this is fine for looking at immediate price action, but makes it difficult for looking at price action over a longer time period) For example, lets say for a bar with a low of 62.55 and a high of 62.62 (looking at CL futures 12:50pm today) 62.61 becomes a significant short term level during construction of the bar (so, not the high or the low) but during construction of the bar a net buyer comes in near the high, and the volume at that 62.61 price when the candle completes is 55 | 164 (109 net bought). This becomes a significant short term price. Its difficult sometimes to see that...but a simple highlight on the price and a line would greatly help with the visual aid. In this example, there were net buyers near the high of the bar, and then in immediate future candles, price traded lower. Those net buyers now become trapped longs (in the very short term). 10 minutes later when price returns to that level, 62.61 becomes a local high (the 109 trapped longs thank their lucky stars that they can get out for a scratch...and they sell). Next the market trades down 10 cents....and the pattern is complete. This is very similar to something SierraChart already does...would just need a few minor tweaks to create some very useful support/resistance levels. The same is true for the opposite (net selling followed by higher price candles = trapped shorts = future support level until the market closes below that significant price in a future candle). Date Time Of Last Edit: 2018-03-05 18:43:05
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