[UrmaBlume]

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.

[Trader333]

I am not clear on one aspect, can you clarify that the pressure model you use is based on transaction volume ?


Paul

[BlowFish]

Interesting you measuring with respect to time to determine pressure. Makes some sense to me too.

[UrmaBlume]

Originally Posted by BlowFish »

Interesting you measuring with respect to time to determine pressure. Makes some sense to me too.

Blowfish - this is still about volume - it is done on a 1 minute chart so that it can be normailzed for time of day.

On several occasions, almost 30 years ago, I spent time at Peter Steidlmayer's ranch near Butte Meadows, Ca. He was my first real mentor when it came to learning the underlying dynamics of what motivates price.

In those days there was no online real-time volume data from the futures pit so Peter used time at price to approximate volume and that is the basis of the market profile. Tim Mathers, owner/founder of CQG, was there and that is how CQG got its fame by being first to offer online profiles.

While Peter is a great theoretical thinker, he is a huge Luddite when it comes to technology and change. I talked to Peter on Thursday and he is still clinging to his old thoughts about time when it is buying and selling volumes that motivate price, not the passage of time.

Today we not only have online volume data but also many intelligent methods and technologies to process that data.

What you see in the above charts is what we call our measure of percentage of commitment to the market by longer term (beyond the session) commercial traders, normalized for time of day and presented in several time frames. This indicator is displayed in a different format on our Market Heads Up Display - HUD.

Today I am 65 years old and what keeps me feeling young is learning by working/mentoring with a small set of folks that have a technical orientation and are younger, smarter and faster than I am.

cheers

[Tams]

There are so many gems to be discovered at TL... this is amazing.
Thanks for sharing.

[AgeKay]

Originally Posted by UrmaBlume »

On several occasions, almost 30 years ago, I spent time at Peter Steidlmayer's ranch near Butte Meadows, Ca. He was my first real mentor when it came to learning the underlying dynamics of what motivates price.

In those days there was no online real-time volume data from the futures pit so Peter used time at price to approximate volume and that is the basis of the market profile. Tim Mathers, owner/founder of CQG, was there and that is how CQG got its fame by being first to offer online profiles.

While Peter is a great theoretical thinker, he is a huge Luddite when it comes to technology and change. I talked to Peter on Thursday and he is still clinging to his old thoughts about time when it is buying and selling volumes that motivate price, not the passage of time.

Great history lesson. Keep it coming, both your trading methodoligy and these stories.

[shrike]

hi
thanks for share it but i'm not understand how you measure pressure
i read several time but nothing

[dandxg]

Originally Posted by shrike »

hi
thanks for share it but i'm not understand how you measure pressure
i read several time but nothing

Having read a lot of UB's posts and being avid student of PV I am almost certain he is using transactional volume. The more volume the more pressure. UB's posts are quite thought provoking and helpful IMO.