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Old 12-09-2007, 12:01 PM
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Re: What is DEMAND/SUPPLY volume?

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For those of you who use Investor R/T software, you have a choice on how you break down volume, the Mister Ed version (bid/ask) or my version (uptick/downtick). Here is a quote from their site:

http://www.linnsoft.com/new/index86.html
The Volume Breakdown Indicator (VB) has been enhanced with an option to divide up volume by "Up Tick vs Down Tick Volume". In the past, volume was always broken down between Ask Traded and Bid Traded volume. Now, the user has a choice of dividing up Buy and Sell volume as either "Ask Traded vs Bid Traded Volume" or "Up Tick vs Down Tick Volume. When "Up Tick vs Down Tick Volume" is specified, each trade that occurs on or after an uptick is placed in the buy volume category, while any trade that occurs on or after a downtick is considered in the sell volume category.
Hi Jerry,

I have looked at both and uptick/downtick looks like a good 'proxy' for volume at bid/ask. While not identical they look very similar.

If you think about it price is likely to tick up to the ask and down to the bid. Of course you do get cases where this is not the case but on the whole the two look very similar. Tradestation offers this uptick downtick natively though there are indicators available to do @bid @ask.

Cheers.

P.S. I cant post charts right now as they only accumulate the volume corectly in real time.

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