Buying and Selling Pressure from Candle High, Open, and Low
Summary
This indicator estimates buying and selling pressure from each candle’s range around its open. Buying pressure is defined as the high minus the open, while selling pressure is the open minus the low. Prevailing pressure is set to whichever of those two values is larger. The indicator can also calculate moving averages of the buying, selling, and prevailing pressure series using a selected smoothing period and method.
Its settings control the calculation period, smoothing, pressure types shown, and whether the display uses raw values, smoothed values, or both. These are configurable display and calculation choices; the document does not describe a trading rule, signal threshold, or empirical test. Because the formulas use only the candle high, low, and open, they measure intrabar range on each side of the open rather than traded volume or order flow. The text is a translated description and supplies no evidence that the indicator predicts price movements.
Key ideas
- Buying pressure is calculated as the candle high minus its open.
- Selling pressure is calculated as the open minus the candle low.
- Prevailing pressure takes the larger of the buying and selling pressure values.
- Moving averages can smooth each pressure series using configurable settings.
- The measure is based on candle prices and does not represent volume or verified order flow.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.