TradeFlow: Trading Range and Trending
TradeFlow 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 TradeFlow bar is the best bid and ask prices. The TradeFlow 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 TradeFlow, please see the article list.The chart is using the 5-tick aggregation.
On Friday, the market opened and trended down, but following the low, traded back to unchanged. The trading was more of a trading range. We can see that the TF5Um5D study, which is the difference between the buy and sell lines of the TFCross study was positive following the low, which is a sign of buying. But, both the running sum of trades at the bid (the red line) and the green line, which is the running sum of the trades at the ask price, from the TradeFlow Volume Cross (TFCross) study tended to track each other. In other words, no one was really dominating the trading.Today, the buyers are more aggressive. The running sum of trades at the ask price (the green line) of the TFCross is climbing faster than the running sum of trades at the bid price.