Price moves because of supply and demand. When we have reached a price level where no one is willing to buy, price will stop moving up and when we have reached a price level where no one is willing to sell, price will stop moving down. Markets are about facilitating trade – discovering prices where buying and selling can occur, so if no one is willing to buy and prices stop moving up, then they will go down until a price is discovered where buyers are willing to buy. When there are less than 10 contracts bought from the ask price at the top of a price bar or sold into the bid price at the bottom of a price bar, we describe this as a Single Print at Extreme condition, i.e. there is a lack of supply or demand.
The volume traded in the market shows us very clearly the willingness of buyers to buy and sellers to sell from the number of contracts traded at a given price. When the volume traded by buyers at the top of a bar is small, it is clear that we are running out of buyers and when the volume traded by sellers at the bottom of a bar is low, we are running out of sellers.
When using Numbers Bars, you can see the exact volume traded by buyers and sellers at the extreme of each bar. We are watching for low numbers. To make it easy to spot these low demand and supply scenarios, the Single Print At Extreme indicator allows you to highlight low buying volume at the top of an up bar and low selling volume at the bottom of a down bar.
For traders that prefer to use bar or candlestick charts, this indicator is particularly useful as it highlights these low demand and supply situations that would otherwise not be visible with these chart types.
Single Print At Extreme may be licensed for Sierra Chart on a Lifetime, 1-month or 3-month basis, or as part of the complete Emoji Trading Order Flow Suite. Licences include all indicator updates and enhancements during the license period.