Ask DrBob Message Board - Msg: 14276399

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Ask DrBob

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: longdong_63 who wrote (1724)	8/25/2000 2:29:03 PM
From: manfmnantucket	Read Replies (1) of 100058

ldong, yes, I think BSR is very useful - kind of like a poorman's futures. except I think it may give more lead time than futures, once you learn how to read it. It has a more scientific basis, being based on supply and demand rather than on price alone. It's calculated simply as the number of buy orders vs sell orders outstanding on the Island ECN at any given instant. So you can see small (or large) surges in buyers vs sellers coming into the market. I'm trying to get other experienced traders (HINT) to use it and tell me if they find it as useful as futures, etc. You just have to keep in mind what it represents - supply vs demand overall. It can show you which way the COMPX will tick next several minutes in advance, but not really how much of a move it will make. The most important points seem to be when the BSR reaches a new high or low and pulls away from that high or low. Today for example, it reached a high of around .50 several times but then pulled back each time, as NAS drifted higher. I read this as saying that the buyers were becoming increasingly hesitant with each new NAS peak, and sure enough NAS then headed down. I'd be interested in any observations you have...

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next