[jperl]

	Quote:	mister ed
	Great post BlowFish. Now, let’s get some friendly debate going. I would start by suggesting that a discussion about the bid/ask volume (definitions to follow) should be on a new thread. While we are discussing it here in the context of VSA, it is a separate concept – by all means marry the two together, but getting to a point where we can do so, and debating it on this thread, is going to frustrate those that want to concentrate on VSA.

Yes I agree. I've started a new thread entitled "What is DEMAND/SUPPLY volume"

	Quote:	mister ed
	Jperl – in response to your post. This whole up-tick/down-tic versus volume at bid and volume at offer is not a debate I am fully cognizant with. The definitions I use are above, these are the definitions used in the Market Delta software, and In IR/T. I can’t speak for other packages. To reiterate: There is a Bid. There is an Ask. A deal struck at the bid price is an “aggressive� sell. Shorthand – a “sell�, what you would class as a “SUPPLY� trade. A deal struck at the ask price is an “aggressive� buy. Shorthand – a “buy� – what you would class as a “DEMAND� trade. Let’s say there is a sequence thus: 1. Bid = 25 2. Ask = 50 3. Trade at 50 for 75 lots. (This is an aggressive buy – reported as a buy) 4. Bid is now 50 5. Ask = 75 6. Trade at 50 for 30 lots. (This is an aggressive sell – reported as a sell). Now, my understanding of what you are saying jperl is that the second deal you would class as a “buy�, or a DEMAND trade because the previous deal was at the ask and was a DEMAND trade. I disagree with your definition here, a hit at the ask is a demand trade, a hit at the bid is a supply trade, regardless of what the previous trade was.

Well your example is somewhat incomplete. Both Trade 3 and Trade 6 was at 50 (the same price). So in my terms, you would need to know what price the previous trade occurred. If it occurred say at 25, then both trades 3 and 6 would be DEMAND trades whereas if the last trade was at 75, then trades 3 and 6 would be SUPPLY trades. It matters not what the bid/ask prices happen to be, only what the time and sales price/volume shows.