JFTSBookPressure
JFTSBookPressure is an indicator that measures buying and selling pressure in the order book, helping to identify support and resistance zones, and/or overbought/oversold markets.
Analysis
- Three plots make up this indicator:
- BookPressureTop, represented by a horizontal line from the last Top (T1).
- BookPressureBottom, represented by a horizontal line from the last Bottom (B1).
- BookPressureAB, which is an average of the other two plots, which can be seen as a trend (M1).
- Note that in the figure, the rectangles were drawn manually to facilitate analysis.
- Also note that (1) is the current bar.
- We are clearly in an uptrend, according to what the average (M1) shows.
- The first rectangle (R1) was delimited by the High at (T1) and Low at (B1) and the respective bars that are between these values.
- It is clear that the market moved within this range a few minutes ago (R2) and (R3).
- A breakout of (HT1), the High relative to (T1), can be seen as a confirmation of this trend, with the Low (LB1) being a reasonable Stop.
- A breakout of the Low at (HT1) may be an even more cautious Stop, since, as shown in the figure,
- it has already been broken several times (the Highs of the rectangles).
- A breakout of (B1) should be viewed with more caution because, as the entire figure shows, the trend is upward.
What happened.
The upward trend has been confirmed.Applying JFTSAutoTrader.
The first ellipse shows a purchase that generated 2 ticks of profit.
Immediately after, in the next ellipse, a new purchase generated 23 ticks of profit.
It should always be noted that this is a historical situation, and historical results do not necessarily reflect the same results in the future.
According to the Risk Disclosure:
“...In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program...”Risk Disclosure:
Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.
Hypothetical Performance Disclosure:
Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.