> 1. The stored 'balance' is the following ratio: (average bid size MINUS > average ask size) / (average bid size PLUS average ask size), expressed in > %. The averages extend over the number of book levels considered or > available (normally 5). This percentage can also be negative. > > For the ES (and many other indexes), the number of levels is actually 10, not 5.
> 2. The 'tension' is: (exponential mean average of above 'balance') MINUS > (the exponential mean average of the mid point prices * scale factor). That's not quite right. Tension is the difference between balance velocity (i.e. the rate of changes in the balance) minus the price velocity (i.e. the rate of changes in the price) > > This seems to be a simple concept. Now how does this compare to the > concepts of Alex Bogdan? > > Notice how Alex Bogdan is talking about "first derivative of the size changes" and "Price move vs. Size move". That's exactly what the Tension indicator quantifies. -- 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.
