Insider Bars Basics: Value Area

The concept of value area is one of the most basic, and yet most important in volume profile analysis. From Markets and Market Logic, by Peter J. Steidlmayer (inventor of Market Profile):

In order to read market activity in the futures market, we will isolate, extract and categorize other timeframe activity, focusing in on and monitoring four portions of each profile:

1 – The value area and how it changes, both directionally and in terms of its high-low range. Monitoring this indicates how the market is facilitating trade. The range of value area as defined by 70% of the day’s volume and its location (higher or lower than the previous day) are illustrated in the lower left hand portion of each profile. This information is important when one is considering whether or not the market is facilitating trade.  Continue reading “Insider Bars Basics: Value Area”

Insider Bars Basics: VWAP

Volume Weighted Average Price (VWAP) has become a fixture on modern trading platforms. From  Wikipedia:

In finance, volume-weighted average price (VWAP) is the ratio of the value traded to total volume traded over a particular time horizon (usually one day). It is a measure of the average price at which a stock is traded over the trading horizon.  VWAP is often used as a trading benchmark by investors who aim to be as passive as possible in their execution. Many pension funds, and some mutual funds, fall into this category. The aim of using a VWAP trading target is to ensure that the trader executing the order does so in-line with volume on the market. Continue reading “Insider Bars Basics: VWAP”

Coming Soon: Improved Reliability with ELD Subscriptions

Those of you who have been TradingApp Store subscribers for a while no doubt understand that, while it is very convenient, the Store can be a pain in the butt sometimes! Its technology comes with added restrictions, and does not allow developers nearly the flexibility we have ordinary EasyLanguage, ELD files, etc. This post is about changes coming soon which will greatly enhance the user experience for OF-G products. Continue reading “Coming Soon: Improved Reliability with ELD Subscriptions”

The Importance of Custom Futures Symbols at Index Rollover

In recent years, the US stock index futures markets have shifted their rollover practices, and TradeStation’s standard continuous contracts have not been adjusted accordingly. With volume-centric analysis tools like Insider Bars, this can cause significant differences in analysis results. For best results, you should use custom continuous contracts which may be tailored to current market practices.

Continue reading “The Importance of Custom Futures Symbols at Index Rollover”

Using 1440 Minute Charts with Insider Bars

A Subscriber Asks: Why do you use 1440 minute charts with Insider Bars?

A chart of 1440 minutes equates to one day, 24 hours x 60 minutes per hour. So a 1440 minute chart is an alternative to using a daily chart.

The reason we do not use daily charts for Insider Bars is that the real-time volume data on TradeStation daily charts is different than on minute, second, tick and volume charts. It includes late prints, spread trades and various other things which would be noisy on intraday charts. Continue reading “Using 1440 Minute Charts with Insider Bars”

Insider Bars Software Update: August 2018

The following is an overview of the August 2018 update to Insider Bars and OF-G Suite.

One Indicator for Everything

A couple of years back, Insider Bars B was spun off from Insider Bars to permit adding functionality which did not easily fit into the original Insider Bars. This proved very confusing to new subscribers, and I’m happy to report that now everything can coexist in one indicator. With this month’s update, all mainstream Insider Bars functionality is available in Insider Bars B. The Insider Bars indicator will continue to be supported as a legacy version, but new development will focus on Insider Bars B. Likewise, online help and sample workspaces will only use Insider Bars B from now on. Continue reading “Insider Bars Software Update: August 2018”