Equilibrium

Based on the assumption that all of the processed orders on the book should result in the price movement that fairly represents those filled orders (ie. the market efficiency assumption), this algorithm calculates the difference between the current actual price level and its fair value.  

The formulae for the Equilibrium algorithm analyzes price fluctuations over a 5-minute sliding window to calculate fair or equilibrium price of the monitored security.  This indicates if there is any room left for price movement in the direction of current market commitment.

When lit, the Equilibrium algorithm is saying: “The market is exhausted in the current direction that is heading, and price momentum is about to reach its limit”.

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