Thank you for sharing. After looking at that I've stumbled upon I *think* what it is I'm seeing in this video. http://www.jigsawtrading.com/learn-to-trade/free-order-flow-analysis-lessons/lesson8/ Cumulative Delta Charts Edit: I knew it was Delta something .. lol
Look at www.marketdelta.com and investor r/t from www.linnsoft.com Market delta is a version of investor r/t with the footprint chart added.
I thought, you have a serious question...ask me next time when you trade 500 lots or more per ticket - like me ;=)
itraderisk, you seem like a person sincerely interested in learning, so I suggest just ignoring the occasional jackass. I think JackRab is right and you're not going to get a very reliable signal in the way you had hoped. I'm afraid I won't be of much help other than to suggest you try and familiarize yourself with market profile. That might be of some use. I want to suggest something, however, to think about in your spare time. If you are familiar with tick charts, where a tick has a different meaning than its usual meaning, you will know a tick is a trade. You decide how many trades you want each bar in the chart to represent. Say you choose a thousand trades per bar. Then every one-thousand trades that occur the chart will move to a new bar. The length of the bar will indicate the range of prices over those one-thousand trades. When trading is slow new bars will print slowly, and conversely when trading is fast. Now suppose you had a way to tell how fast new bars were printing. You can get a feel for this just by watching the chart print out. But I am talking amount a quantitative measure of this. You might choose a fairly low number of trades, say 100. Then plot the rate of trades. That is how much time passes to accumulate 100 trades. At a turning point in the price what might you expect the rate of trades going off to do? Now I am not familiar with any stock platforms that will give you this as a standard feature. In any case you would need a reliable, low latency data feed . What might this data if collected and statistically examined tell you about turning points in the market, and in what way might it be superior to say volume? Just something to think about...
Thank you so much for your input and suggestion of something to consider! I am eager to learn and trying new and different things to identify signals of entry. So to summarize what you're saying... You're suggesting to look at the speed of ticks/orders printing on the tape and study to see how fast these new tick bars print on a chart during a turning point in price. Correct? I think I get where you're going with this. You're saying that as price is going through a turning point one way or another, the price action and ticks will appear much faster then normal. And if I am able to quantify that number of speed (so to speak) statistically I'd have an edge of determining the pivot point in a price moving whichever direction (upside or downside.) Correct? Hoping I'm understanding you fully.. thanks
Yes. That's good thinking. But keep in mind that the rate of trades going off normally passes through maxima near support and resistance, and you don't need that information to tell you where support and resistance are, that's obvious to all experienced traders. And the size of these maxima changes with market participation of course. You are looking for something in addition to just simple confirmation that you are at support or resistance. So you really need to collect data and analyse it statistically, and I would suggest graphically as well. What is the shape of the maxima and is that telling you anything?