> In any event, if the JBT sample strategies are anti-trend, then, I guess, you > subscribe to the contrarian point of view. > Just to make sure I understand it correctly: in velocity indicators, when the > spread between the short-term and long-term averages gets larger than some > "entry" value, a short position is taken? > I.e. when there are more sellers than buyers and a cumulative ask size > suddenly > greatly exceeds the cumulative bid size, as in your example below, then the > book > balance velocity is high and a long position is entered? >
It's actually the opposite, sorry if that was not clear. Long positions are entered when the short term balance is greater than a longer term balance and is above a certain threshold. Short positions are entered when the short term balance is smaller than a longer term balance and is below a certain threshold. This is actually in line what I designated as the Econ 101 principle, but I also designate these as anti-trend strategies because the long and short entries tend to coincide with the price reversals. Hope this makes sense. -- You received this message because you are subscribed to the Google Groups "JBookTrader" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/jbooktrader?hl=en.
