Have been playing around with NT5 charting tools, what an addition to NT5! Awesome.
Anyway, I have an idea for an indicator that you guys might want to build into a future version. Its something I have been using when looking for entry points in share trading, and that is calculating the number of bids to a certain depth, and the number of asks to a certain number of levels of depth, and weighing one against the other in an effort to forecast future short term price movements. As we all probably know, more bids (buyers) pushes the price up, and more asks (sellers), pushes the price down.
By totalling the number of bids against asks, it is possible to foretell which direction the next sale will turn, therefore making it a bit easier to a) pick a finely tuned entry point, and b) have an idea of whether the market will go long or short.
It has been pretty successful for me with shares, as it is a slower market - the numbers of bids and asks in a stock's market depth chart change pretty slowly and I can calculate these pretty quickly in my head, but with the futures the numbers of bids and asks changes very rapidly, making it next to impossible to make such calculations mentally.
I see on the SuperDOM that bids and asks are shown to a depth of 5 levels, how difficult would it be to have these figures filtered into a program that weighs each up against the other and outputs a +/- figure, indicating a possible future long or short trend?
Anyone got any throughts on this?
cheers,
Comment