What’s an imbalance and why is it only on the NYSE?
The NYSE imbalance alerts only happen near the end of the trading day. These are based on the specialist’s market on close orders. If there are more people trying to buy a stock than are trying sell the stock, then we call that a “buy imbalance.” If there are more people trying to sell, then we call it a “sell imbalance.” The description of the alert includes the size of the imbalance in shares.
So we say, for example, in a NYSE sell imbalance:
“HLX 07/15/2008, 03:40:52 PM: Sell Imbalance. 190200 shares.”
When there are more buyers than sellers, that often pushes a stock price higher. When there are more sellers than buyers, the pressure goes in the other direction. The imbalance data speaks directly to these facts. That’s why we use green to show buy imbalances, and red to show sell imbalances.
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There’s a great way to customize this alert: You can filter the NYSE imbalance alerts based on the size of the imbalance. We don’t filter these based on the raw number of shares in the imbalance. Instead, we look at the size of the imbalance for a stock as a percent of the total number of shares traded today for that stock. So you can say, for example, “Show me imbalances that are 20% of the total shares traded today”. For different stocks that size of the imbalance in shares will mean different things, but a percentage let’s you define what an important amount is for all the stocks you want to see.
Here’s the latest list of alerts we’re reporting for NYSE buy imbalances.
Here’s the latest list of alerts we’re reporting for NYSE sell imbalances.
We’ll post some strategies using these alerts soon!
- No matter which platform you use (e.g., browser, TI Pro), you can already access the new alerts – new alert and filter innovations like these are automatic to subscribers because both applications make a “call” to our servers for the latest list whenever someone interacts with our alert window settings via ‘Configure’. When we add them, you receive them instantly.
- Trade-Ideas pricing plans and subscription rates here.
- Users of Trade-Ideas Pro are encouraged to download the latest version of the application. This is unrelated to the new alerts or filters. Rather, a download of the latest version of the application is necessary to benefit from other aspects of the service, like minor visual enhancements and background “plumbing” maintenance that keeps the service as fast as possible.