If you believe in market makers or population of small trades which manage the market, this is your indicator. It aims to show powers which move the market in one or another direction. It also shows where the market tends to move when these powers are absent.
This is quite a simple indicator. It does not have any complicated algorithms nevertheless it will be a great supplement (basis) to any trading system. It excludes so called "false" signals of other indicators. Useful for non-indicator(!) trading, as its purpose is to give you a deeper understanding of the market situation.
How Does It Work?
It uses 3 values in calculations:
- volume (unfortunately, it has been tested on tick volume yet)
- midpoint shift (4 ways to calculate this point)
- ratio of candle's open and close price (i.e. bullish and bearish candle)
If volumes do not grow, the market not influenced from outside tries to find a balance. As a rule, the next thrust happens in the direction of the natural movement.
Thrusts are drawn by a colored bold line on the volume chart (blue color indicates bulls, red color indicates bears by default. Can be changed.) Reversals are drawn by a bolder line (optional). Movement in the passive mode can be optionally enabled (shown at the bottom of the chart).
- Bottom part is... - what to display at the bottom of the chart? Options:
- Empty - nothing;
- Real Higher TF - real higher time frame;
- Emulated Higher TF - higher time frame emulation by values of the current one;
- Higher TF with custom period - emulation of an unspecified higher time frame divisible by the current one;
- Smoothed trend - smoothed volumes and trend;
- Inactive movement - price movement in the absence of thrusts;
There is a robot developed to test the indicator's performance capacities. Although the indicator is meant for manual trading, the robot showed positive results. Sure enough, if you buy the indicator, you will get the robot for free. Just send me a private message.