Saturday, September 15, 2012

Buying and Selling Pressure Indicator


My Buying and Selling Pressure Indicator has invoked lot of interest and have received many requested.  This is actually a very simple indicator using the daily excursion of the price.
Many times it is just a matter how we are looking at the data.  We can glean lot of information if we look at the data the right way. My Buying and selling pressure indicator is also the same case. Very simple Indicator, using the open, High, Low and Close and the volume. It obviously not a Holy Grail, but does give a very good picture of the buying and selling pressure.

I am sharing the afl for the same. There are two indicators. One is a Raw Buying and selling pressure Indicator.  The Raw buying and selling indication is provided in terms of a Histogram. Green bars above zero show the buying pressure and the red bars below the zero line show the selling pressure.  This presents a good visual representation of the dominating pressure.

The second is a smoothed version with version with a yellow line representing the selling pressure and a turquoise line which represents the Buying pressure. If the turquoise line is above the yellow line it would mean that the Buying pressure is more and vice versa. The difference between the two is plotted as a Histogram. This is a cumulative value of the buying and selling pressure and provides a easy visual presentation of the dominating pressure.
These two indicators can easily compliment your main strategies like Volume Spread Analysis..

You can also watch my video on this Indicator..



9 comments:

  1. Hi Karthik

    Nice to meet you again
    I learned the basics of TA from you and saint at Traderji.I think you were in Kuwait. Still there?
    I am from Thrissur and a write a blog on day trading Nifty Futures. Leisurely have a look
    http://www.niftynirvana.blogspot.in/
    Looking forward for meaningful interaction
    Kindly remove word verification from comments

    Regards

    Rajesh

    ReplyDelete
  2. dear sir
    can u pls confirm if the buying/selling pressure indi is based on bid/ask data! if not, then what is it based on?
    thks in adv

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  3. Your blog is very informative and gracefully
    your guideline is very good.Thank you
    Regional pharmacy college
    deepshikha group of colleges

    ReplyDelete
  4. beautifullllllllllll sir,,

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  5. hi sir
    very intersting to c ur blog
    and before i saw ur money flow indicator setup vedio
    after i came to my trading software (angel broking not like ambibroker or metatrader software which cant save afl codes)software i have searched then i got mfi but its totaly diffrent
    so plz kindly post the formulas for buyying pressure and selling pressure with volume indicator?
    thanku in advance

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  6. Hello Kartik, This is very nice indicator.I have one more idea, which if u like u can integrate into it. That is using OI for trading in F&O instead of Volume.

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  7. Dear Sir

    Your indicator is very awesome. I use it with time period modification and get consistency profit on intraday trading. Thank for your sharing.

    Indonesian Stock Trader

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  8. IMHO, The Twiggs Money flow indicator seems to have better performance than this one.
    http://www.incrediblecharts.com/indicators/twiggs_money_flow.php

    ReplyDelete