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Ah....yah!
Price tends to trade towards size....it is about moving price to where the INVENTORY IS for distribution or accumulation. Have you read any of the ACV threads...ViperSpeedTrade r points out this historically known action of the markets quite well. If the 5 levels of the DOM bid/ask can hold a ACV ratio of 2:1 or greater for a continuous period (not on-off, on-off activities)....then you can see many times price TRADE TO the size. I use this information ALL the time when I am looking at trade signal set-ups near MP levels. You need to get ACV ratio information displayed on your DOM to track this.
Fulcrum
Great ACV thread..... http://www.elitetrader.com/vb/showth...&highlight=ACV |
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Interesting Fulcrum, thanks for sharing.
If you have info to add, please do. It would be interesting to be able to break this down more to be able to use it meaningfully. As I said, the bid/ask totals change so quickly that I find it hard to read but haven't done much with it. If you have some guidelines or rules to share, that would be great.