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Understanding BuySellPressure

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    Understanding BuySellPressure

    Hello,

    I'm having a little trouble understanding BuySellPressure/Volume.
    The help states the following, "The BuySellPressure indicator displays both the current bar's buying and selling pressure as percentage values based on the categorization of trades as buy or sell trades. "

    What I don't understand is, why Buy Pressure IS NOT equal to Sell Pressure. My reasoning is that for every seller there must be a buyer, and vice-versa. This, to me, would mean that buy volume and sell volume should be the same.

    Where is my reasoning flawed? My guess is it's something about whether the trades occured at the bid or the ask?
    Last edited by Crumbs; 01-28-2010, 12:33 PM.

    #2
    Hello Crumbs,

    Thank you for your post.

    BuySellPressure Indicator
    The BuySellPressure indicator displays both the current bar's buying and selling pressure as percentage values based on the categorization of trades as buy or sell trades. Trades are categorized in real-time as a buy (at the ask or above) or as a sell (at the bid or below).... Trades in between the market are ignored. This is a real-time indicator only. It functions only on real-time data and therefore does not plot any values on historical data. If you change any property, interval or instrument on a chart, this indicator will restart and any accumulated real-time data plots will be lost.




    BuySellVolume Indicator
    The BuySellVolume indicator displays a real-time horizontal histogram of volume categorized as buy or sell trades. Trades are categorized in real-time as a buy (at the ask or above) or as a sell (at the bid or below) and then color coded .... Trades in between the market are ignored. This is a real-time indicator only. It functions only on real-time data and therefore does not plot any values on historical data. If you change any property, interval or instrument on a chart, this indicator will restart and any accumulated real-time data plots will be lost.


    In summary, buy and sell do not match since trades in between the market are ignored.
    KyleNinjaTrader Customer Service

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