15 July, 2016

Single Print as Gap

Rationale & Trading Techniques

Not all prices are equal. The market will sometimes spend a lot of time in price areas (‘acceptance’, ‘balance’) as this range of prices is acceptable to many buyers and sellers. When price is rejected or a market moves out of balance, prices will be passed over quickly and not much trade is facilitated. Depending upon the tools used to analyse the market, we may refer to these areas as low volume nodes or if no trade has occurred in these areas, gaps. In futures contracts that trade high volumes, a traded volume quantity below 10 allows us to treat this Single Print as Gap.

The market exists to facilitate trade, discovering prices where buyers and sellers can do business with each other. If the market finds a price level unacceptable, when price next approaches it, we may well again reject it quickly, passing through it or back away from it.

Much like the Single Print at Extreme indicator, the Single Print as Gap indicator highlights prices where the market’s traded volume is showing us an absence of buying or selling. These areas are indicated by a Forward Projection Zone. With the knowledge that these prices are likely to be rejected, we can regard them as areas for potential entries knowing that price is likely to move away from these areas quickly or as near-term price targets if we are holding a position and price is moving towards one of these prices.


Examples

Note the 2 contracts sold into the 2265.25 bid at 11:18, how this price was rejected at 11:20:06 and finally traded at 11:23:36 after 2268.00 could not be broken.

Single Print 2 - Emoji Trading Order Flow Suite

 


Single Print as Gap Settings


Input Name Description
Extend Until Future Intersection? Select whether Extension Lines are enabled/disabled for the Single Print price levels within the current price bar.
Extension Line Label Text indicator for the Extension Lines.
Forward Projection Zone The number of bars forward from the bar that a Forward Projection Zone will be drawn at each Single Print price.

Indicator Subgraphs

Subgraph ID Subgraph Description
SG1 Lowest Single Print Bid Level Provided to assist the development of Spreadsheet Trading systems and Automated Trading systems using ACSIL.
SG2 Highest Single Print Bid Level Provided to assist the development of Spreadsheet Trading systems and Automated Trading systems using ACSIL.
SG3 Single Print Bid Extension Line Use to set the drawing properties for the Extension Lines drawn from the Single Print bid prices. 
SG4 Lowest Single Print Ask Level Provided to assist the development of Spreadsheet Trading systems and Automated Trading systems using ACSIL.
SG5 Highest Single Print Ask Level Provided to assist the development of Spreadsheet Trading systems and Automated Trading systems using ACSIL.
SG6 Single Print Ask Extension Line Use to set the drawing properties for the Extension Lines drawn from the Single Print ask prices.