has this been done before?

April 12th, 2010, 01:13 AM

hello,
i had an idea for a customized indicator using the bid and ask volumes.
i wonder if it has been done?
and whether it would give any pert information?

it would simply take the difference of the bid and ask over a user-specified number of bars.
so for example, on a one minute chart, i might have a running tally of the last 10 bars' net bid-ask volume.

the purpose would be to show accumulation or distribution on a specific time frame.

yes, i use the bid/ask histogram now that shows the bid and ask volume for each period.

April 12th, 2010, 01:35 AM

It's alright, kinda makes it look like an oscillator of sorts. Some of my first bid/ask indicators were simple SMA's of the bid - ask volume... which is equivalent to what you are describing only scaled by a factor (if I understood your post, anyway). In 2008 there are pictures of it on my website. Like... for instance... Daytrading Exxon Mobil Corporation ([AUTOLINK]NYSE[/AUTOLINK]: XOM)|Move the Markets but there are lots more if you dig around.

I can't say it's better or worse than the simple bar-by-bar bid-ask volume, because it always depends on what you are wanting to see. Both have their uses.

has this been done before?

Discussion in Platforms and Indicators

has this been done before?