I would like to start a thread and post some ways I am using the bid/ask indicator I actually bought from Guy, I used to have a different way of charting this, but this is just easier.
I will explain the indicator, my techniques, it's benefits,and it's problems........
DA
day trading
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quote:
Originally posted by pem06081971
the bid/ask indicator is kind of an xray into the bar telling us a little more about what happened "inside it"....is that a fair statement?
That's actually a very good analogy.
Taken in context that should give us insight into the market's potential under certain circumstances. If, for example, the market is moving sideways and yet each bar is made up of net bidders then that should (theoretically) indicate that the market is likely to break down. My logic on this is that the bidders can't move it off a sideways motion and so there is hidden selling pressure in there. (I'm just typing my thoughts as they come to me so don't quote me on the validity of this theory.)