Sideways Trading Based on the TradeFlow Chart of the E-mini S&P 500
This morning, the TradeFlow chart shows a sideways trend. We can see that the price climbed into a resistance zone, but the buy volume line (green) of the TradeFlow Volume Cross Study made a much lower high. This indicated buyers were not likely to bid the market through resistance.
Friday, gapped down and tried to fill the gap, but met sellers in the resistance zone A. Then the market rolled over and traded right through the support zone B. The TradeFlow Volume Cross Study (TF5VCrs ) did not indicate that buyers were coming in, as the sell volume line (red) was above the buy volume line (green) at this point. Then the trended lower but the TF5Um5D study diverged (trend line A).
The market rallied to 1420.00 and traced out a resistance zone B, which checked the rally. Sellers came in and the market testes support zone D. Both the buy and the sell volume lines of the TF5VCrs were flat. Traders were not selling into support or buying. But, as this was the low of the day, then this was a retest. The retest of support holding lifted traders’ confidence and the market rallied. However, the price action traded through the resistance zone at 1420.00 but the TFUm5D diverged (trend line B), and the market sold off heading into the close.
To read more about these two custom studies, please check out my article TradeFlow Custom Studies
January 8th, 2007 at 11:47 am
The last 8 tradeflow bars in your chart of today in which you explain the snaptrader functionality, differ from the corresponding 8 tradeflow bars in the above chart (for the Friday). How can that be?
Fwiw, your chart for Friday (above) corresponds with the chart that my CQG shows me.
However, I have noticed the discrepancy between your charts and my charts in other examples, mostly occuring in the most recent bars of the chart. My initial example above shows that it probably has something to do with your data (and not mine)?
January 9th, 2007 at 12:46 pm
Thanks for your comments. I run Alpha versions of CQG for testing and I was using one for my charts. There is a bug in that version. I have switched over to a current version. My charts should now match yours. Thanks for pointing this out.
Thom Hartle