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Gom volume/Price anomoly??Input please


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  #1 (permalink)
 deercreek 
Garden Valley, ID
 
Experience: Intermediate
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Broker: Mirus/ZenFire
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Posts: 11 since Oct 2009
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Hi All

I have a question that I hope someone can help explain for me.If you look at the enclosed attachment can you tell me why and how price can close higher when volume(bid/ask)on the GomCD shows more selling (panel 2) and more down ticks
on the Up/Down tick with continuation (panel 3)? The examples are highlighted with the green arrows. I and a trading buddy have been racking are heads and can't figure out how this happens.
I know by the brilliance I've observed of many of you on this Forum that someone has an answer...and I appreciate any and all input.
Thanks.....


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  #2 (permalink)
 
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 redratsal 
Milan (I)
 
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deercreek View Post
Hi All

I have a question that I hope someone can help explain for me.If you look at the enclosed attachment can you tell me why and how price can close higher when volume(bid/ask)on the GomCD shows more selling (panel 2) and more down ticks
on the Up/Down tick with continuation (panel 3)? The examples are highlighted with the green arrows. I and a trading buddy have been racking are heads and can't figure out how this happens.
I know by the brilliance I've observed of many of you on this Forum that someone has an answer...and I appreciate any and all input.
Thanks.....


Have a look at Cumulative Delta By Christopher at Fulcrum Trader Webinar: Cumulative Delta Volume Trading this might help answer your question. I also suggest to use this indy https://nexusfi.com/free_downloads/vip_elite_circle/458-download.html?view


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  #3 (permalink)
 
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 cory 
virginia
the coin hunter
 
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deercreek View Post
Hi All

I have a question that I hope someone can help explain for me.If you look at the enclosed attachment can you tell me why and how price can close higher when volume(bid/ask)on the GomCD shows more selling (panel 2) and more down ticks
on the Up/Down tick with continuation (panel 3)? The examples are highlighted with the green arrows. I and a trading buddy have been racking are heads and can't figure out how this happens.
I know by the brilliance I've observed of many of you on this Forum that someone has an answer...and I appreciate any and all input.
Thanks.....

its called seller exhaustion. When there is no more willing sellers price cant move down.


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  #4 (permalink)
 deercreek 
Garden Valley, ID
 
Experience: Intermediate
Platform: Ninja Trader
Broker: Mirus/ZenFire
Trading: ES
Posts: 11 since Oct 2009
Thanks Given: 7
Thanks Received: 3

Thanks very much for your input


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  #5 (permalink)
 
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 Silvester17 
Columbus, OH
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deercreek View Post
Hi All

I have a question that I hope someone can help explain for me.If you look at the enclosed attachment can you tell me why and how price can close higher when volume(bid/ask)on the GomCD shows more selling (panel 2) and more down ticks
on the Up/Down tick with continuation (panel 3)? The examples are highlighted with the green arrows. I and a trading buddy have been racking are heads and can't figure out how this happens.
I know by the brilliance I've observed of many of you on this Forum that someone has an answer...and I appreciate any and all input.
Thanks.....

in your example you can see that a lot of sell orders are hitting the bid (active sellers). but price doesn't follow down. meaning passive buyers (limit orders at the bid) are absorbing the selling.

now if active buyers getting in control (hitting the ask) and price starts to move up, you might think about going long.


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Last Updated on May 22, 2011


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