[mister ed]

	Quote:	jperl
	This thread is started as a result of a short discussion by Tasuki in the Volume Spread Analysis posts 982 and 991 to quantify the concepts of DEMAND and SUPPLY volume. The problem arises on how to define DEMAND volume and SUPPLY volume. Some traders define trades made at the ask as DEMAND volume, trades made at the bid as SUPPLY volume. Other traders would say volume should be considered DEMAND only if there is an uptick in price and SUPPLY only if there is a down tick in price. If price does not change, then that trade is taken to be DEMAND volume if the last time price changed was an up tick and SUPPLY volume if the last time price changed was a down tick. The former definition is used by Mister Ed in the following quote from the VSA thread In that series of trades, trade 3 would be DEMAND volume of 75 lots because it occurred at the ask and trade 6 would be SUPPLY volume of 30 lots because it occurred at the bid. For the alternative definition of DEMAND/SUPPLY (which I prefer) consider the following series of trades 1.Bid =25,Ask=50, trade at 25 for 25 lots 2 Bid=25,Ask=50, trade at 50 for 75 lots 3.Bid changes to 50, Ask changes to 75, trade at 50 for 30 lots In this scenario, trade 2 would be DEMAND volume of 75 lots because there was an uptick from trade 1 from 25 to 50. Trade 3 would also be DEMAND volume of 30 lots (even though it occurred at the bid at the same price as trade 2) because the last price change was an up tick(trade 2 after trade 1). This is not a small difference in definition and is crucial for quantifying many of the ideas in VSA. This thread is now open for discussion.

New thread! OK.

Just to reiterate Jerry - yes we are in complete disagreement about our definitions