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”
The concept of point of control (“POC”) dates back to the 1980s, and the introduction of Market Profile. In a traditional Market Profile display, the POC is the price with the most TPOs (time price opportunities).
A TPO equates to a letter printed on a Market Profile chart, signifying that the market traded at that price within a 30 minute period.
Continue reading “Insider Bars Basics: Point of Control”
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”
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”
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”
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”
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”
Today I am adding a new indicator to the Insider Bars free add-on package, called Insider Bars Spectrum.
It shows relative performance of the five US stock index futures markets at a glance:
- Dow Jones Industrial Average (YM)
- Standard & Poors 500 (ES)
- Nasdaq 100 (NQ)
- Standard & Poors Midcap 400 (EMD)
- Russell 2000 (RTY)
Continue reading “The New Insider Bars Spectrum Indicator”
Attention OF-G Users: Commencing today, release notes for software updates will be provided via the OF-G Blog rather than by email. Please subscribe by email or RSS to keep up with the latest developments for your product.
All of the OF-G premium products are receiving updates this week, to address some “back office” changes made by the TradeStation. There are two primary issues:
- In recent TradeStation updates, input screens for tradingapps like Time Sales Pro have been opening behind the platform, rather than on top as they historically have. This has been fixed.
- TradeStation fixed a long-standing (7-8 years old) EasyLanguage bug, and this affected how OF-G default settings were saved and retrieved. Changes were needed to address the update. If you have saved your personal default settings for any of the indicators which permit this, you will need to resave them once you get this week’s update. (This is not TradeStation version-sensitive; the changes apply equally to all TS versions.)
Insider Bars Users: There is also a little bug fix in the market depth display of Price Vol Pro. In some instances where market depth updated before the first trade of a new bar, market depth had some display irregularities; these should be fixed now.
Also, I am still anticipating a fix for the Insider Bars tick/volume chart – streaming data optimization issue later this month. So stay tuned.
The TradeStation TradingApp Store does not permit a software-only subscriber (one without a TradeStation brokerage account) to subscribe to premium products. I’m happy to report that OF-G now offers Paypal-based subscriptions for those without a brokerage account. These are available on a quarterly or yearly basis. Please email if interested.