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Showing results for tags '[volume]'.
Found 6 results
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Hi, This is a new thread to discuss all things Delta - referring to the difference in trades placed at the bid compared with the offer. So for example if 10000 contracts trade at one price over a 5 minute period in the E-Mini S&P 500 contract, 6000 bought at the offer and 4000 sold at the bid, the delta of that price would be +2000. The premise is that the traders who do their business at market are the more aggressive participant. Another example would be in the same 5 minute period, regardless of price, 50000 contracts are traded. Let's say 20000 were bought at the offer and 30000 were sold at the bid. That 5 minutes would be said to have a delta of -10000. For me, delta is a great visualisation of one way action that may lead to a decent move during the day. You can see if you are watching say a 15 or 30 minute chart the imbalance of trade building up and it can be a great indication of continuation in a particular direction. Another way in which I have more recently found delta useful is by watching cumulative delta compared to price movement. Cumulative delta is just like a price chart but with delta. So let's say you have 5 minute bars and you have deltas over the course of 15 minutes of +7500, -1500 and + 4000. You would get a delta plot of +7500, +6000 and finally +10000. So I have found that for example when the cumulative delta is pushing down and overall price is drifting up, there is an implication that there is an underlying bid in the market which is strong enough to absorb that aggressive trade and as such often the market can then break in the direction of price. This is divergence. I also know that with tools from certain vendors, it is possible to look at delta action in much greater detail. Traders might look at say delta at extreme prices when the market is retesting these extremes to judge better the effort of the market than simply looking at volume. There are many ways in which delta can be applied and interpreted and I feel it could be useful to discuss them here. I am happy to answer any questions on the subject, although there will be many who know more than I do! TheNegotiator.
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If I have an order for one contract one tick above a previous high and another party buys or sells to me filling the order making price trade that one tick higher. Does my one contract purchase/sell agreement between another just like me have the same authority to move the market one tick as an agreement between two for 1000 contracts? If a one contract agreement between two participants (or even outside forces) has the ability to make price trade higher or lower, the same as any other size, would one's focus on volume be beneficial or a distraction from what price itself is doing?
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Hawkeye Indicators are based on Wycoff Trading Method. Understanding Volume Volume in the market is as important is to your car. Prices do not move without buyers and/or sellers. To help in understanding typical volume and price behavior, post these notes beside your computer and learn to identify the different volume behaviors as they occur on your charts. Normal Volume Behavior: • Volume is highest before congestion • Volume is lowest as it moves deeper into congestion • Volume increases with a valid breakout of congestion and then subsides as the trend begins. (Look for the last Hawkeye Pivot being taken out.) • Volume increases with major reversals, approximately for the next 5-7 timeframes • Volume should move with trend strength, ie if trend dots are up and on an angle greater that 45%. • Volume should be lower on the second double top/bottom formations showing lack of selling. Then volume will pick up and a trend will be established. Abnormal Volume Behavior: Congestion Areas: • If heavier volume appears at the low end of congestion area, buying is being supported and prices tend to go up after breaking out of the upper price resistance level. • If heavier volume appears at the higher price level in the congestion area, then there are more sellers than buyers. Prices will eventually decline from the higher support area of the congestion zone. • Volume should increase during the breakout then subside as the trend begins to form. However, if volume stays high after the breakout and prices move too strongly, then the breakout will not be valid and prices will move back into congestion until fair value has been established then continue in trend (in other words price has got ahead of its self and it requires attendant volume to confirm trend direction.) • If price retraces after a breakout from congestion on high volume, and bounces off the outside edge of congestion, and then volume picks up again, this is a valid breakout. Volume should be in the direction of the breakout. However, if volume does not confirm the direction of the breakout, then prices will likely go in the opposite direction. Remember, normal volume breakout increases with the breakout. Therefore, if you see a breakout with low volume, anticipate entering in the opposite direction as price cannot continue in this direction on low volume.
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Interpretation of volume as it pertains to share/contracts traded. How is volume recorded/stamped/represented when shown on a volume histogram at the bottom of a chart, or in the case of CV bars on a chart? Consider a bar of 1000. What does this imply? Is this a count of all buys and sells combined (traded) or as individual buys and sells. Is this 800 buys, and 200 sells or is it 500 buys and 500 sells?
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Almost all of the information I've seen about using volume while daytrading is on interval charts (second or minute charts). I recently discovered that I can add volume to my tick charts. Is there a difference in the way volume is presented with interval charts verses tick charts? Is volume on a tick chart just as accurate as it would be on an interval chart? Thanks.
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[volume] Distinctions Between the Types of Volume Analysis.
zdo posted a topic in Technical Analysis
This thread could also be titled : The slow group needs help from the smart group We need help shrinking / resolving inconsistencies between 1 VSA (Williams book, TG, and purists’ commentary, et al) and 2 Wycoff purists and 3 SMI and 4 DbPhoenix work Step 1 Order of analysis ?? (First you look at _____, then you check ___, etc) VSA ?? Wycoff purists ?? SMI ?? DbPhoenix ?? help! Step 2 Terminology ??? Example: Here’s one way I am currently shrinking / resolving any inconsistencies between VSA (book and purists’ commentary) and the other approaches. Whenever I read or infer the terms ‘professionals’ or ‘smart money’, I substitute the word ‘size’ – particularly in any VSA content. An example from MTMv3, I would read “…markets move because of the effect of professional accumulation or distribution. If a market is not supported by professional activity, it will not go very far… ” (pg 39 pdf) as “…markets move because of the effects of size accumulating or distributing. If a market is not supported by size, it will not go very far…" need help making other differentiations and distinctions where terminology may be impeded our understanding of these various volume approaches. Step 3 Stability Context ??? (continuing from Step 2... "go very far…") ... And, yes, size needs to be smart or it won’t stay ‘size’ for long - but that’s not the point. Neither is it the point that size, to be effective / create results, may need to be size ‘known to be in the know’ (ie ‘professionals’). The point is that at and during the occurrence of all these Wycoff and VSA based volume dynamics / patterns, the market is not in a place of precarium (where a single car could trigger a bifurcation). Size participates in high volume wide range, etc and either size participates in tests or no test even occurs, etc. And size is intrinsic to the whole prerequisite process where a ‘crossing the stream’ can occur, etc Db’s volume dynamics / patterns / processes are a slightly different animal. Db’s processes / volume indicators (that oughta wake him up! just zinging you buddy :haha::helloooo: Just a tiny bit more seriously, I hope it will elicit new contructs or perspectives or ways of describing it from you) form in a more local context at pre-selected potential SR and are much less dependent than Wycoff or VSA patterns on a broad sequence of activity and its ‘correct’ result on the chart (ie on a background formed by many ‘bars’). i.e. Although size has dominated at least some occasions in the formation of an SR zone (or line, etc), his work does not require the same background / size setup / footprint as VSA setups His triggers generally occur in more routine market conditions that are actually closer to instability but it is still less likely a single car could trigger a bifurcation. (and, also, the order of analysis may be quite different from the VSA contexts – comments anyone?) A step closer to precarium … Then there are those more rare moments / dynamics / processes when a single car could and does trigger instability and in these conditions, size will often contribute to / exacerbate the sudden instability by ‘gettin the ‘#vck’ out of the way Step 4 Pattern size / Number of bars needed to form a gestalt ???? help! Step 5 ???? help! Step 6 ???? help! .... Please offer your additions, perspectives, fill in the blank areas, and make corrections where content is 'out to lunch' to help clarify the differences between these 'volume' approaches. Thanks
