15 July, 2016

Zero Print

Rationale & Trading Techniques

At times, large volume traders will submit orders of sufficient size that at given prices, no two-way trade occurs and we see zero volume on the opposite side of the market to that which they were trading at. This can be a sign of stops being triggered – large volume traders will seek to trigger stops – or simply of order size and we of course wish to trade in the direction of those traders who trade with sufficient volume to move the market. In liquid markets, these zero print price levels leave the market unsure about the impact of these prices – price is an advertising mechanism for volume – and as well as defining support and resistance levels, zero print prices also provide levels that the market may well revisit in order to determine supply and demand at these levels.

You can use the emoji trading Order Flow Suite to highlight zero print levels that represent real-time market-generated support and resistance with Forward Projection Zones and Extension Lines.


Examples

Note how as price rose from the low (11:37:55), zero volume traded at 2261.00 and this price traded both at the formation of the next bar and acted as support in the 11:38:46 bar:

Zero Print 1 - Emoji Trading Order Flow Suite

 

Note how as price fell sharply through the open during the lunchtime trading period, no buyers bought the ask at 2263.25. In the run up to the close of the session, this price traded again serving as resistance and the Extension Line provided a visual indication of this real time market-generated support/resistance level:

Zero Print 2 - Emoji Trading Order Flow Suite Zero Print 3 - Emoji Trading Order Flow Suite

 

Zero Print Settings


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

Indicator Subgraphs

Subgraph ID Subgraph Description
SG1 Lowest Zero Print Bid Level The lowest price within the bar where zero volume traded at the bid.
SG2 Highest Zero Print Bid Level The highest price within the bar where zero volume traded at the bid.
SG3 Zero Print Bid Extension Line Use to set the drawing properties for the Extension Line drawn from each price level where zero volume traded at the bid.
SG4 Lowest Zero Print Ask Level The lowest price within the bar where zero volume traded at the ask.
SG5 Highest Zero Print Ask Level The highest price within the bar where zero volume traded at the ask.
SG6 Zero Print Ask Extension Line Use to set the drawing properties for the Extension Line drawn from each price level where zero volume traded at the ask.