Breaking of resistance with persistent liquidity
Posted: Fri Dec 27, 2019 3:20 am
support/resistance flip
Persistent liquidity in heatmap provides clear support in bids and resistance in asks.
Sometimes persistent liquidity is pierced through large trade volume.
I want to formulate quantitative measure of failure of support/resistance by
1. flux(number of up trades /unit time @ resistance)
2. added(subtracted) liquidity /unit time @ resistance
Indicators based on order flow and trade show the probability of breaking resistance can be extremely helpful.
I would experiment construction of "likelihood of breaking of support/resistance" with bookmap api .
Persistent liquidity in heatmap provides clear support in bids and resistance in asks.
Sometimes persistent liquidity is pierced through large trade volume.
I want to formulate quantitative measure of failure of support/resistance by
1. flux(number of up trades /unit time @ resistance)
2. added(subtracted) liquidity /unit time @ resistance
Indicators based on order flow and trade show the probability of breaking resistance can be extremely helpful.
I would experiment construction of "likelihood of breaking of support/resistance" with bookmap api .