Trending Action and Trading Range with TradeFlow
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 Monday, buyers stepped up and bid the market higher. The running sum of trades at the ask price (the green line) of the TFCross quickly climbed above the running sum of trades into the bid (the red line). But, as the market began to slow it’s ascent, the TFCross study start making lower peaks, indicating buyer were backing away. The TFCros study then went flat, a sign of participants backing away. At the close buyers came in again.
Today, the market made it into a resistance zone and sellers came in. At the moment, sellers are dominating as indicated by the red line of the TFCross is above the green line.