Not all instruments exhibit the same behavior in terms of volume, for example in the case of the ES if you can monitor volume bid x ask delta then a surge of volume >= 2000+ on a 1 minute interval should alert you that an orgasm is about to occur (read breakout) or better is presently occuring. The next step is to evaluate if you get some follow through in terms of volume and movement specially if you placed a market order.
Last edited by trendisyourfriend; May 10th, 2011 at 08:39 AM.
The following user says Thank You to trendisyourfriend for this post:
Do you have a method to identify a conjestion period apart from eyeballing the price action?
I have been designing various ideas / concepts such identifying a big price move and then a limited range / tight band or price moving within a Keltner channel with flat MA but haven't got around to coding or investigating this.