The Book Pressure Gauge measures the relative flow rate of NEW bid orders versus NEW ask orders that are accepted in real time by the order book. If the flow of new bids significantly exceeds the flow of new asks the gauge marker will be located above its middle line. The opposite is true for the situation when the flow rate of asks is greater than flow rate of bids. In this case the gauge marker will be located below the middle of its scale. However, as with the spectrum gauges, if the flow rate ratio between bids and asks is exceedingly skewed the gauge’s marker will swing either above the red line or below the blue line indicating that the bid or ask pressure has reached its peak. As in the case of the Commitment gauge, if the Book Pressure Gauge is above the red line on top of its scale it would be a good time to consider selling the analyzed security, providing all the other gauges confirm this decision. On another hand, if the gauge’s marker is at the bottom of its scale (below the blue line) it is a good time to consider buying the security.
As with all the other gauges, the Book Pressure Gauge should not be analyzed separately; it should always be considered as a part of all the other indicators in Stealth Trader© front panel.