Originally posted by Jako8557
No Demand bars appear a lot more often than No Supply bars - is this normal?
No, not necessarily
The current trend makes a fair bit of difference, as you will usually see 'true' No Demand after weakness (serious selling), or when price is trading under a negative influence and is in a downtrend (and when you see a NS bar after some sort of decent supply event, it will often be the seller easing back on their supply, in preparation to give price a push back up, before resuming the selling again).
You will see 'true' No Supply after strength (serious buying), or when price is trading under a positive influence and is in a uptrend (and when you see a ND bar after some sort of decent buying event, it will often be the buyer easing back on their demand, in preparation to give price a push back down, before resuming the accumulation again).
So the indicator needs to be 'in the right place' and 'in the right context' (after buying or selling).
If the indicator is NOT 'in the right place with the right context', it is usually doing something else (often just 'marking time, because the market is not favourable - for whatever reason - at that point in time). So the bars may just be coincidentally appearing like a ND or NS bar.
Does that make sense ??
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so anyway, most of those bars seem OK, there might be a few (minor issues) with a few, which I will attempt to explain later......
cheers
Thanks Jako, yes that makes complete sense.
For me this is part of a wider attempt to have a few signals that draw my attention to a particular chart for a closer look, where I can then evaluate the context, strength, upside and risk of any potential trade. Similar on a basic level to having a simple Stochastic RSI cross as a trigger signal and then using other information to qualify the signals like the prevailing trend, proximity to strong S&R levels etc. Also to help look through more charts in less time, especially as I haven't been doing this for long enough to consistently have all the important and relevant info jump out at me! And any indicators I can code I can use in isolation or in combination with other indicators to automatically email me an alert once a condition is met. Again hopefully I can use that to be able to watch and react to more stocks in less time.
I've relaxed some of the textbook parameters for the ND and NS signals, so I imagine some of the signals may in fact be another SOW or SOS like a test of some type? As I add some more types of signals maybe I'll find that the NS and ND parameters can be further tightened and more specific.
The MNS recent NS signal may be an example of what you describe with serious selling in the background temporarily easing up? Price did move significantly higher but some serious selling came back in today!
Cheers, Rooster
(20min delay)