The supply analysis tool - how to?

[jagin]

Hi Pascal,

I'm going through chapter 4: "Supply and Demand" and I'm trying to get the idea how to code the supply analysis tool.
To be honest it is hard to catch the point how you went from the volume histogram and/or profit/loss to the supply analysis.

On page 198 you mention some mathematical model but the description is not clear for me.

Would you mind to describe in an algorithmic way how to calculate the supply analysis chart?

Regards

Jarek

[jagin]

I also wandering why in your book the Supply of Shares chart has horizontal axis going through dates but on your pages I can see the examples for single day where horizontal axis is price.

[Pascal]

I also wandering why in your book the Supply of Shares chart has horizontal axis going through dates but on your pages I can see the examples for single day where horizontal axis is price.

It is because in a book, the objective is to explain things with some background information and perspective. hence, I show the evolution of the indicator over time.

On the web site, who cares about that indicator some weeks ago. What we want to know is the supply level right now and how the supply level will move when the price moves. The web site is more to take real-time decisions.



Pascal

[Pascal]

Hi Pascal,

I'm going through chapter 4: "Supply and Demand" and I'm trying to get the idea how to code the supply analysis tool.
To be honest it is hard to catch the point how you went from the volume histogram and/or profit/loss to the supply analysis.

On page 198 you mention some mathematical model but the description is not clear for me.

Would you mind to describe in an algorithmic way how to calculate the supply analysis chart?

Regards

Jarek

Indeed, the Supply model is intentionally left in the dark and I will keep it that way.
It is a good opportunity for motivated readers to come up with new ideas.


Pascal

[jagin]

Indeed, the Supply model is intentionally left in the dark and I will keep it that way.
It is a good opportunity for motivated readers to come up with new ideas.
Pascal

I'm working on your book for a lot of time. This is so far the only book that gave me the understanding the market works. As a software developer I have already coded the indicators from chapter 1, 2 and 3 and now I'm a a little bit upset. Anyway thanks a lot Pascal for your help.

Jarek