TFlow™ and the E-mini S&P 500
TFlow is CQG’s innovative charting style that is color coded to track traded volume at the ask price versus bid price. The high and the low of the TFlow bar is the best bid and ask prices. The TFlow bar is colored green for the percentage of volume at the ask price (buying) and red for the percentage of volume of trades at the bid price (selling). For more information on TFlow, please see the article list.
On an intraday basis we will look at a 5-tick aggregation of TFlow. On the chart are drawn support and resistance zones from yesterday’s high and low. We can see that the market has been confined to trading within yesterday’s range.
In addition, a number of studies are included. First is the TFlow Volume Cross (TFCross), next is the TFlow Up minus TFlow Down Volume (TFUmTFD), next is the TFlow Volume (TFVol) and last is the total volume for each TFlow bar.
Checking the TFlow Up minus Down volume study (TFUmTFD), the histogram bars traced out a pivot low and started climbing when the market was in the support zone. Sellers were losing control.
The TFUmTFD study turned positive. This is also seen as TFCross Buy volume line (green) crossed above the TFCross Sell volume line (red) in the TFCross study. Buyers were taking charge. However, the TFCross Buy volume line (green) is not advancing to new high levels, so the buying is weak.
This chart (TFlow 2) is a closer look at how the short-term intraday bottom formed.
When the support zone held and the selling peaked, buyers then came in and took charge. We can see the evidence by the TFCross Buy volume line (green) crossing above the TFCross Sell volume line (red) in the TFCross study.