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Old 02-28-2007, 04:20 AM
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Re: Supply vs Demand

I do not talk much about it, as I don't really like indicators.

Wyckoff Effort IndeX (WEX)

Volume = Activity= Effort=Order Flow
Price=Result

The basic idea comes from Wyckoff. It measure the amount of effort to rise and the amount of effort to fall. Effort is the volume and is seen thru the open/close relationship. Open<Close Effort to Rise. Open>Close Effort to Fall.

What is nice about this is there are no parameters or averages involved. It simply sums up Effort to Rise until it sees Effort to Fall. Note that a "doji" a sign of indecision is summed up as both Effort to Rise and Effort to Fall.

For those who like such things, this tool is good for divergence.

Note on the attached chart the Effort to Fall as prices moves down towards and then thru the lower portion of the Value Area.



p.s. For those familiar with Ensign Software, this is also known as VolumeSum


Last edited by Anonymous; 02-07-2008 at 07:41 AM.
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