by Jeffreyvnlk » Thu Apr 25, 2013 4:25 am
Sorry might be we in a mess, my bad. I was not good reading that concept from Mr.Larry Williams.Let me fix it
The idea: each day we have a buying pressure (BP) and a selling pressure (SP). For example in a green day, gold running into 25$ which can be divided as 5$ for SP (Open minus Low) and 20$ for BP (High minus Open). The next day, SL greater than that of previous day, meaning more sellers coming into the market. Also the same token for BP. As a result we have a tug of war in this uptrend, more buyers as well, kind of doji or a pink day according to Bill Williams in Money Facilitation index
Now we go further: we only take SP for a green day and BP for a red day (minority under our radar)
Applying: in an up trend, we seeing SP growing and some reversal might occur soon
Reflection: i think this idea running opposite to Stochastics concept. In the uptrend, the Close usually get closed to the High. Here, we focus on the Low comparing to the Open
Hope it can help a bit
P/s: Apprentice, once again, could you adjust a bit that indicator. Sorry for interrupting you