A Trading Idea which needs Refining

Well somewhat similar to candle strength is the 'price action indicator' (PAIN)

PAIN = (C-O) + (C-H) + (C-L)

C-O = momentum
C-H = Seller pressure
C-L= Buyer pressure

So VERY high buyer or seller pressure would signal interest for reversal. Pretty much all candlestick/bar formations obey this rule

ex. pin bar: VERY high buyer or seller pressure with low momentum. Give's you a good entyr, that is if you got the right one.

I would go one farther and say that price data is communicated between banks, dealers and brokers in real time. I can't verify that, but that's the way markets work - they'd better know what the others are doing. I believe price data from bank transactions is transmitted in real time. Tick volume is a count of the number of price changes.

Brokers get their data from the banks. Otherwise they would have different price data, and those days seem to be gone. They are in sync.

One broker's activity isn't going to be enough to drive market prices, and they aren't going to change their price based only on their customers' activity. The data comes from the banks, therefore, tick data reflects what the banks are doing.

Here is discussion on the topic.

http://www.forexfactory.com/showthread.php?t=67655

After a lot of thought about what Bill Williams said, I feel tick volume is a valid indication of overall activity. Williams says it is as good as true volume for all practical purposes.

A very simple yet very effective tool, trend meter

Nothing to do with volumes,

just the current candle values of high, low, open, close

Positive is uptrending, negative is downtrending

range is from +100% to -100%

try it.


A lazy trader like me loves to automate everything, proves how lazy i really am.

Lets say, like GU has reached -80% on daily and weekly, it means it has reached closer to its bottom and can turn from here.

Interesting approach...trying out
But yes... the main idea should to be value strength in a move up or down esp in absense of real volume data

Regards fxlion