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Track the buying and selling strength in the market and see when control shifts from buyers to sellers and from sellers to buyers.

Buy Sell Strength Indicator

The majority of technical indicators are based on price. In other words they are a summary of the price action. The chart itself is a summary of price action. Price is important, no question, but it only gives half the picture. When you make a trade, not only do you communicate the price and whether you are a buyer or a seller, you also communicate the number of contracts you want to trade. The number of contracts, or the volume of trading, is vital information.

If you are not looking at volume, you are missing half the picture.

The problem with volume is that it doesn't tell you whether it represents buying strength or selling strength; because for every contract traded there is a buyer and a seller. So how can we determine whether a trade is bullish or bearish?

When we trade we have a choice. As a buyer we can either join the current bid and wait to get filled, or we can get filled immediately by hitting (trading at) the offer. Conversely as a seller we can either join the offer and wait to get filled, or we can hit the bid and trade immediately.

Generally, when we hit the bid or the offer (i.e. we trade instantly) we are trading more aggressively, we are more certain that the market will move in the direction of our trade; and when we join the bid or the offer (and wait to get filled at the better price) we are trading more passively as there is no certainty that we will trade at the chosen price.

So a trade that takes place at the offer is a more aggressive buyer and a more passive seller, hence trades at the offer are more bullish. Where as a trade that takes place at the bid is between an aggressive seller and a passive buyer. Therefore trades taking place at the current offer price are bullish and trades at the bid price are bearish.

So how do we measure whether trades are happening at the bid or the offer?

Well, you can't get this information from a price chart. You can, though, get this information from a time & sales window. The time & sales window will show you all the trades taking place in a streaming format and you can adjust the properties of your time & sales window to colour all trades at the offer blue and all trades at the bid red (for example). So we can see in the time & sales window all trades and whether they are trading on the bid or the offer.

Time & Sales data is very valuable, but it is difficult to read as the data flies by so fast.

Buy Sell Strength Indicator

Hi Malcolm, I've been using your Buy Sell strength oscillator, every day now, and would not think of not using it again. A wonderful indicator , for predicting turning points in the emini mkts. Thankyou for such a wonderful indicator. Jay

The Buy Sell Strength Indicator is a chart based oscillator that gives a pictoral representation of the volume of trades taking place on the offer verses the volume of trades taking place on the bid. Below the zero line the oscillator is red, representing selling strength, and above it is blue, representing buying strength. As the market progresses the Buy Sell Strength Indicator shows the changing state of control in the market.

The Buy Sell Strength Indicator is available for Ninja Trader only. If you currently use a different charting package Ninja Trader is a free program when used for charting and it is compatible with many different data feeds.

Only available as past of the Day Trading Mastery Webinar Package

Buy Now for Just: $997
(Note: VAT is added to all European orders.)

Questions? Use are speedy contact form

Hi Malcolm,

Just a quick note to let you know how much I am enjoying the Buy/Sell indicator. I am using it primarily to gauge the overall tone of the market using 3 different time frames (10 minute, 3 minute and 233 ticks). I take my trade signals from the 233 tick chart looking to go with the Buying/Selling tone of the higher timeframes. It has really helped get me on the right side of the moves and stretch trades for bigger profits.

Congratulations on your innovation. It is definitely one of the best indicators I have tried.

Regards,
Dave



"It has been extremely interesting to see how the techniques have clearly demonstrated their effectiveness in the markets this week. It is the first time that I have felt so confident in calling trading opportunities using any system and what makes it more appealing to me is that it is based upon simple, basic principles. Congratulations on your ability to illustrate it with such clarity and professionalism."
Kind Regards, Vincent B. (Ireland)


"Hi Malcolm, I've been using your Buy Sell strength oscillator, every day now, and would not think of not using it again. A wonderful indicator , for predicting turning points in the emini mkts. Thankyou for such a wonderful indicator."
Jay (US)


"Hello Malcom, Thank you for the excellent training. I have found it to be extremely useful in many areas. I have been trading for over 30 years, primarily in stocks and options. I also worked on the trading floors for over 18 years. The last few years I have been working on mastering trading the SPs and the Russell with mixed success. However, since receiving your video, I have gotton a new perspective and am seeing dramatic improvement in my profitability. I have just completed 10 days of consistant profits and that is absolutely a first for me. Of course, there will be negative days, but with the methodology you have demonstrated, I feel losses will be manageable. Have had many losers over the past 10 days, but the % is strongly with the winners."
Yours truly, Paul L. (US)


"...your edge really works, which is the most important thing... For me the best thing so far, which I believe I mentioned in the room, is the sense of calm you transmit, which helps me to become more patient, and also seeing how some of the setups you call actually develop, which have been profitable."
Juan R. (US)

"Hi Malcolm, I am impressed with the B/S Strength Indicator and having been around the block a time or two that's no easy task. Years ago I started a policy that if I couldn't make enough money to pay for a new system or indicator(s) during the trial period, I didn't buy it. Well I've had the Buy Sell Strength Indicator for two days now and I will be purchasing your indicator after today's close. I'm using the indicator as per you videos but I also found it to be a highly accurate at confirming another indicator I use. My hat is off to you...you developed what I tried to but couldn't. Well done!"
Marty (US)


"What has really impressed me is your ability to read the turning points in the market. Your understanding that the market will turn, therefore you continue to take small trades reminds me of the way Paul Tudor Jones, in the book Market Wizards, describes his strategy... I have also learned a great deal about waiting for the correct moment to execute the correct trade."
Best Regards, Sanjiv M. (UK)
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