actio-et-reactio
Balance is but a brief transition between extremes.
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Saturday, October 07, 2006
Bid/Ask & Equivolume
One idea that surfaced very quickly after Howard's introduction of the
new features was to highlight price having high Ask/Bid ratios. For my purposes, I color bars green/red for up down and when the Ask or Bid ratios are above 75% they go dark green/red, and above 85% they go yellow/orange.
"Big" volume always relative to surrounding price action. In this chart, price is near a "relative" top, the upper 180ma Bollinger, so big up volume may show over-enthusiasm, esp. as the BBands were pretty flat. I'd look for reversal sign, but lunch kinda got in the way. You can really see the low volume when the "twiggy" bars show up. Nevertheless, the alert trader got rewarded. Moral of the story: avoid pasta for lunch if you like to trade the afternoon.
Here's an idea:
Top 10 Chart Patterns and Setups for MarketDelta™ has a few links, in particular the MarketDelta Strategy Guide, that might give the volume trader a few ideas and strategies that can be used with the Bid/Ask and Equivolume displays within Ensign. Of course, MarketDelta™ clearly offers additional information in the display not in Ensign, but that's not the point. A student scrounges and scarfs all over the place!
[click for larger image]
Labels: chart-analysis, volume
At last, over the rim
of the waiting earth
the moon lifted with
slow majesty
till it swung clear of the horizon and rode off,
free of moorings
- Kenneth Grahame,
The Wind in the Willows
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