Bid / Ask Volume Analysis and Tape Reading

Posted on September 21, 2005
Tags: Trading Resources |

While browsing through QCharts features and indicators I came across an interesting measure which calculates the ratio between the Volume at Ask and Volume at Bid. The premise is based on tape reading technique in which the health of the trend can be measured by looking at the strength (volume) of the traders sitting on the Ask (moving up) versus that of traders sitting on the Bid (moving down). QCharts may be a good application but the documentation is bollocks so I was looking online for some information on this feature and found this relevant Chat Transcript - Bid/Ask Analysis on EliteTrader.

So far I must say I’m quite happy with QChart, it has lots of features which I’ve never seen in any of the other charting apps I’ve used in the past. If you want to check it out you can get a free 1 month here. (my affiliate link).

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