Well,
I just want to give EA programmer some encouragement, I think the indicator is an excellent idea, if we can insure the integrity of the tick counts and fix the bias against sell volume.
I've been reading thru the Alex_S post and his concept rest upon nowing the position of the total of the largest high volume orders at several prices, Then watching to see whether the price action consumes the entire order or bounces off of the order (not consuming the entire order); thus creating a reversal. If price action doesnt gain enough volume to retest the residual order, pricing will return to the level of the last order that was fully consumed. ( Now this is how I understood his theory and it could be totally inaccurate).
Now assuming my understanding is correct that means for us to accurately apply his theory maybe we need to track the top 3 buy and sell volumes instead of just one of each. So we have a clearer indication of where the big volume orders were and develope a theory for projecting where pricing will go next.
We wont be able to replicate what he is doing exactly because he is using futures.
I must add that I have multiple computers and 4 different feeds and I was rather surprised at how uniform the volumes were looking at all four feeds simultaneously. This signaled that using this indicator off of a single feed will give you a true representation of the market as a whole. Think about it when enviromentalist test a lake for contaminants they dont pour the whole entire freaking lake into a test tube, they take a small representative sample and use that to conduct their analysis.
Dallas
I just want to give EA programmer some encouragement, I think the indicator is an excellent idea, if we can insure the integrity of the tick counts and fix the bias against sell volume.
I've been reading thru the Alex_S post and his concept rest upon nowing the position of the total of the largest high volume orders at several prices, Then watching to see whether the price action consumes the entire order or bounces off of the order (not consuming the entire order); thus creating a reversal. If price action doesnt gain enough volume to retest the residual order, pricing will return to the level of the last order that was fully consumed. ( Now this is how I understood his theory and it could be totally inaccurate).
Now assuming my understanding is correct that means for us to accurately apply his theory maybe we need to track the top 3 buy and sell volumes instead of just one of each. So we have a clearer indication of where the big volume orders were and develope a theory for projecting where pricing will go next.
We wont be able to replicate what he is doing exactly because he is using futures.
I must add that I have multiple computers and 4 different feeds and I was rather surprised at how uniform the volumes were looking at all four feeds simultaneously. This signaled that using this indicator off of a single feed will give you a true representation of the market as a whole. Think about it when enviromentalist test a lake for contaminants they dont pour the whole entire freaking lake into a test tube, they take a small representative sample and use that to conduct their analysis.
Dallas
, because there is a certain level of reponsibility one should assume when you give birth to one of these babies.
