Trade Point Technologies

Intensity of Trade

Before Electronic trading one advantage floor-traders held over off-the-floor traders was
that they all knew each other. The know who traded 2 lots and who traded hundreds or even thousan lots.
They also know that when prices were near the session highs and a known commercial put his palms out (palms outward for
selling and inward for buying) that there was size to be done, that it was going to be selling, that this would most likely be the
session high and also that this was probably a pretty good place to sell a few, too.

Now there is no pit and the intense trade that forms local extremes is oftentimes executed by computers operating
in the millisecond time frame.

Below are some screenshots of the indicator that we have built to spot the kind of trade that makes these local
highs and lows. When taken in combination, the acceleration and deceleration of buying and selling volumes, total volume and the
velocity/rate of change in the balance of trade reveal a certain dynamic that we find present at many, if not most, intra-session extremes.

We find that with a couple of parameter changes this indicaor will perform in a variety of markets.
Below are shots from the S&P, Treasury Notes, SoyBeans and ETF's such as OIH.

OIH

TY - Treasury Notes - Sell

SoyBeans - Buy

S&P - Buy

S&P Buy

S&P - Sell

Trade Point Technologies
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