[Supply Vs Demand At Key Pivots]

[Soultrader 12]

This is a new strategy that I designed today on anticipating breakouts from key pivots. This is a momentum play and not to be mistaken with a homerun trade strategy. I exit at the first sign of momentum loss. The indicator used in this video is located in the indicator forum. It is a Bid-Ask Pressure Indicator for Tradestation.

 

CLICK HERE TO VIEW VIDEO

 

 

Charts created by Tradestation

Presented by Traders Laboratory

20060726114402BA PRESSURE.ELD

[wrines 10]

Thanks for the video, Soul.

I have a couple comments on that indicator, as I have used it extensively in the past several months.

I have also corresponded with the developer of it on the TS forums, and made inquiries to TS directly regarding it.

 

Here is the bottom line:

As anything, whether or not it can be helpful in your trading is entirely dependent on your application of it. One very important thing you need to realize about it, though, is that it is a CHART indicator in TS. Why is that important? Because in TS Time & Sales, Matrix, and Radar, the bid/ask volumes are true and accurate in real time. HOWEVER, the charting element in TS does NOT get true bid/ask detail per-trade data. It gets "snapshot" data. This was explained to me by a TS support person on the telephone about 2 years ago when I tried to use TS's own indicator they included beginning with TS 8 called "bid/ask volume ratio". I tried to make use of that indicator in real time, and it wqas extremely erratic. Now this newer version coded by a TS user includes some smoothing of the bid/ask volume data and some other tweaks intended to improve its accuracy and efficiency, but it is important to remember that in real time, the indicator makes use of "snapshot" data, not true, live bid/ask volume data. The TS support personactually said he wished that TS had not even included the bid/ask volume ratio indicator in TS 8 for this very reason, because the chart plots can be, in a word, unreliable. Obviously, as Soul just demonstrated, the indicator CAN be useful, and its developer and I also agree that it has *some* merit, but you just need to be aware of the nature of the data it is built on. This has more impact the shorter the time frame you are using, as the odds increase that the "snapshot" data it is built on are not valid representations of shorter time-frame changes in the TRUE data. I was told that these "snapshots" are taken "every few seconds", for whatever that is worth. In personal use, I have found its optimum usefulness to be on a 2-3 minute time frame (or its equivalent if you use tick/volume charts), and had never considered monitoring it only around pivots, which is a great idea. Hope this clarifies the subject matter a bit.

W

[Soultrader 12]

Thanks for clearing it up wrines. I will spend some time observing this indicator and will keep you posted if I find any further insights. I tried using it in two occasions yesterday, one of which I used it to trade. I will explain further once I am convinced this indicator can help.

 

Note: Should never be used alone. The indicator should be used as confirmation only.

[namstrader 10]

indicator forum? Soul I am lost to where it can be found. Can you be more specific, I am clueless. Thanks. Looks like the MarketDelta but for some reason it stopped working for me. I would rather have this bid ask pressure indicator as better visual. Thanks for the shared video.

[namstrader 10]

found it from ant. negate my request.

[namstrader 10]

from you rather. forget me now please!

[bnawas 10]

just joined the site a few days ago. I love it! I love your videos and I have learned so much. thanks for everything Soultrader!

 

Basim.