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Valtos Transition

This indicator forms part of the Valtos Indicator Suite of indicators using order flow analytics algorithms developed by Mike Valtos of orderflows.com. It is designed for short term traders and looks for shifts in supply and demand – the areas where the market changes from a demand-driven market to a supply-driven market or vice versa. When a market is putting in a bottom or a top it exhibits certain characteristics which can be seen in the order flow. When a bottom is being made the selling decreases and you see buying start to pick up and conversely when a high or swing high is being made you see buying decrease and selling start to pick up before the market falls over.

You can learn more about the Valtos Transition by following these links:

Indicator Settings & Outputs Reference

The indicator considers the relationships of price, volume and delta across three adjacent chart bars. Assuming:

  • A is the current chart bar
  • B is the bar before it
  • C is the bar before B

Bar C’s Delta must oppose that of Bar A.

Lookback Period

The quantity of bars preceding bar C for which any of the three bars A, B or C must be a higher high (for a Supply Event) or a lower low (for a Demand Event).

Ratio Balance 1

The strength ratio of Bar C to Bar B.

Ratio Balance 2

The strength ratio of Bar A to Bar B.

Maximum Balance Volume

The maximum or minimum Delta permitted for Bar B.

Indicator Offset (Ticks)

The number of ticks away from the bar high/low that the Supply/Demand indicator Output Signals are drawn.

Outputs

This indicator provides:

Output Signals

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