First off, check out the kick-ass entry signals I’m getting today on my newest entry indicator. Not bad… (if you aren’t in the know, it’s the topmost subgraph showing three entries… two short and one long… and all very profitable).
Anyway….here’s a first version of a new indicator that gives volume pressure split by trade size… Above it you can see the full volume pressure histogram (the red/green one). As you can see, the overall volume pressure looks pretty much identical to the “large trader” profile, which I have set to watch trades of 51 contracts or more.
So, does seeing the smaller traders mean anything, then, if the overall profile and the large trader profile look so similar? I think there are possibilities. First off, I’m going to scale up the lines for the other trade sizes, so that they look visually the same as the large traders. Then, I’m going to examine ideas like watching for small-trader capitulation when they have been running against the large traders. Stuff like that. Maybe it will be useful, and maybe not. That’s what experimentation’s all about.