We believe that price is motivated/propelled by an imbalance in buying or selling.
Further we operate on the basis that it is surges in buying and selling volumes that that create the pressure that drives price throughout the trading session.
Even further we believe that this pressure is evident well before moves in price and would like to demonstrate that via Friday's trade.
In all of the screen shots below you will see buying pressure represented by blue histograms and selling pressure is red. Further you will see that the peak of the pressure occurs
well before the peak or valley in price.
We don't use averages, candles, profiles, pivots, rsi, stochastics or any other price based indicators - we use our skills, experience and technologies to try and measure buying and selling in the market place. After all - what could be more fundamental to the motivation of price than buying and selling pressure?
If you can measure the pressure, you can predict the move.
In this first shot you can see that blue, buying pressure, peaked at around 0610, 20 mins before the open and that within 30 minutes after the open price was up 10 Points.
An hour after the open a peak in selling pressure foretold a 6 point drop in price:
An hour later a peak in buying pressure propelled price upward and lasted for about 40 minutes before selling pressure manifested itself:
Of course the best move of the day started a little over an hour before the close. The move was well foretold by buying pressure and was good for almost 20 points valley to peak.
Linear Mode
