great content man , so interesting ..glad we can use this data to make more responsible decisions and not just guessing and doing what everybody else does!
I'm not entirely sure how there are different volumes for sell and buy. When I buy something is because someone else is selling and when I sell something is because someone else is buying... how is it possible that the volumes are different? Does this volume also takes into account the open orders for seeling or buying? (In that case it would make sense to have variation between buying and selling volume) Thanks!
Great question that is asked a lot. You are right - there are two participants in every trade. The buyer and the seller. Also in every trade consists of a limit order and a market order that fills the limit order. The buy and sell volume indicate who initiated the transaction (the trader who used a market order). This gives us a good picture of the bullish/bearish bias of the market.
Buying volume is the number of contracts that change hands at the ask (offer) price. Selling volume is the number of contracts that change hands at the bid price For me, it was helpful to think of an analogy. If someone wants to sell me a car at 11k and I want to buy it at 10k, and we attempt to convince each other, but ultimately I agree to buy at 11k, then that means i was more eager to buy than he was to sell: its buying pressure. He won the argument. He got me to come up from my bid price and meet his ask price. Now do the whole scenario in reverse; that's sell pressure, or sell volume, if you will
Personally I can't really use BFXdata.com because I don't trade on Bitfinex. But I use tradingView.com and I found a buy and sell volume pressure indicator, seems should able to apply on this particular topic. The short name of the script is "BSP_XeL" Buy & Sell Volume pressure by XeL_Arjona. What do you think about this indicator?
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great content man , so interesting ..glad we can use this data to make more responsible decisions and not just guessing and doing what everybody else does!
Excellent and informative video, as always!
Thanks!
I'm not entirely sure how there are different volumes for sell and buy. When I buy something is because someone else is selling and when I sell something is because someone else is buying... how is it possible that the volumes are different? Does this volume also takes into account the open orders for seeling or buying? (In that case it would make sense to have variation between buying and selling volume)
Thanks!
Great question that is asked a lot. You are right - there are two participants in every trade. The buyer and the seller. Also in every trade consists of a limit order and a market order that fills the limit order. The buy and sell volume indicate who initiated the transaction (the trader who used a market order). This gives us a good picture of the bullish/bearish bias of the market.
BfxData somehow doesn't work maybe because of high load. Is there any other way to look a buy/sell volume separately? Thanks!
Buying volume is the number of contracts that change hands at the ask (offer) price. Selling volume is the number of contracts that change hands at the bid price
For me, it was helpful to think of an analogy. If someone wants to sell me a car at 11k and I want to buy it at 10k, and we attempt to convince each other, but ultimately I agree to buy at 11k, then that means i was more eager to buy than he was to sell: its buying pressure. He won the argument. He got me to come up from my bid price and meet his ask price. Now do the whole scenario in reverse; that's sell pressure, or sell volume, if you will
Personally I can't really use BFXdata.com because I don't trade on Bitfinex. But I use tradingView.com and I found a buy and sell volume pressure indicator, seems should able to apply on this particular topic. The short name of the script is "BSP_XeL" Buy & Sell Volume pressure by XeL_Arjona. What do you think about this indicator?
I just published BFXLS100 on tradingview.com and it will also show the percentage of the long and short position.
Thank you very much for sharing !!
Hey what about for those trading on bitmex?
you are a life savior sir
@@clementcho does it still work ..i couldn't see the percentages on tradingview ?
Can these same principles be used in much shorter term trends? Same but smaller scale?
Yes, using long % sentiment would work well on a shorter timeframe.
the btfxdata website doesn't work. So is there another way to see only the buy and sell volume spikes on a chart?
Yes, you could use Tensorcharts.com (a more advanced look at buy and sell volume spikes).
Make a ether prediction! Do you think ether will go down to 400-450?
Woah..hope you hodld