Buyers & Sellers / Range

18. Juli 2023

Buyers & Sellers / Range
Volatility oscillator that measures the relationship of Buying & Selling Pressure to True Range.
In other words, how much % Buyers and Sellers separately occupy the Bar

BSP is a part of Bar Range. Entire bar metrics will always have bigger value than its composite elements (body and wicks).
Since there will be NO chance of BP or SP being more than ATR, their ratio would serve crucial Volatility details.

Hence, we can relate each of them to the overall range.


As a result we have simultaneous measurements of proportions buyers and sellers to the bar.
Default mode shows BP/ATR and SP/ATR mirrored. When one rises, the other falls to compensate.

• Buying Pressure / True Range ⬆️🟢 ⬇️🔵
  
• Selling Pressure / True Range ⬆️🔴 ⬇️🟠
  

They are being averaged in 2 different ways:

• Pre-average first, then relate as ratio
  
• Related first, then Averaged
  

Enable "Preaveraged" to use already averaged BSP and Ranges in ratio instead of averaging the ratio of BSP to individual bar. For example, we're looking BP/ATR, in calculation of buyers / Range it will use "MA(Buying Pressure) / MA(True Range)" instead of "MA(Buying Pressure / True Range)".
Due such calculation, it is going to be more lagging than in off mode. Nevertheless, it reduces noise from the impact of individual bar change.


Second way of noise reduction is enabling "Body / Range"
BSP Body / Range where Bullish & Bearish Body = Buying & Selling Pressure - Relevant Wick

• Buying Body = Buying Pressure - Lower Wick
  
• Selling Body = Selling Pressure - Upper Wick
  

And only then it is divided to ATR.

Note that Balance line differs because body is less than it used to be with wicks. So change in wicks won't play any role in computing the ratio anymore. Thus, signals of their crossings will be more reliable than in default mode.

24. Nov. 2024

Versionshinweise

Runs on 10-polar Gaussian filter enables smooth transition between phases of dominance.