I use bid/ask extensively in my trading, which is why I still use Tradestation (only reason really).
His case makes a lot of sense, but I would have to ask if that is a common occurrence. I have found that if I look at the raw bid/ask data that it is extremely jumpy from one extreme to another. However if I smooth that data out then it reflects the true order flow. Very often I see a tip off to a reversal with this data.
Hey Cunparis. This is the first time I have seen this thread/forum. I see most of this discussion on TL and ET. I want to offer a suggestion to filter these set ups. Use tick divergence and S/R. I wish I knew how to code, but I don't.
I use tick divergence in my ES trading and also S/R. In the past I've tried coding divergences but could never get it coded to my satisfaction. To me it's a visual pattern that has to be taken into context. Same for S/R.
I agree that these make a fine addition to trading, but I think the first step is to see if we can figure out how to use trade intensity to our advantage. After that we can see if it needs anything else. As I understand it, this trade intensity is for a very quick scalp so I'm not sure anything else is needed.
UrmaBlume The indicator I posted does not use price in any way and defines trade by the "very secretive traders" whose trade alone is enough to motivate/propel price and the non-retail traders I know find that very useful indeed. I couldn't see how that is true no one can access that information. The large commercials use what is called a "Dark pool". Dark pools of liquidity - Wikipedia, the free encyclopedia It is totally hidden then just appears then disappears no one can track it or trace it if they could there would be chaos. This person must be using something like COT data or something freely available.
The following user says Thank You to gregor32 for this post:
No think about it. COT data on Friday is from Tuesday, that is quite a bit of delay. COT is worthless for day trading quite good position trading. COT has been showing, last time I checked the Large Specs adding to shorts. It's a function of time/velocity. If it were not indicators like volume stop, very good BTW, and time histogram wouldn't work. I just wish I could get them working on Sierra, because NT 6.5 even with a quad core is a beast on resources. Oh well NT7 is coming in about 3 months.
I am using 2 "trade intensity" indicators to confirm one another. Time Histogram and Volume Stop for currency futures working quite nicely, a real scalper's ball. This is a great forum thanks Mike and those that contributed these indicators.
Out of curiousity has anyone tested the attached indicators posted over the TL thread? Figured I would test TicksPerSecond tomorrow on a 1-range. I use Volume at Price studies as the fundamental setups for entries, but am lacking a confirming indicator--great work so far!