Just to be exceptionally CLEAR......DELTA is not an INDICATOR......created from PRICE and LAGS. DELTA is VOLUME......REALTIME, just parsed to show the conviction within the order flow.......REALTIME!
ES today. Open any type of chart and you will see a support around 905 (900-905 or so). What did the price do. It hit it. Went up. Try to go back down and then went up again and broke the previous high. This is around 909. So you have a 4 point stop loss. Now can you see a good profit target based on your win%? If you do then you have a trade.
I am not arguing that delta volume is not a good information. I am just saying that if one starts to believe that there is a special predictive power in the delta volume, he will not be free to follow the price action in real time. For example you said the if the price broke the 910 there will be quick sell off. It seems that you were correct for 5 points. Now what? The price went back above 910. What does this mean? Explain the process here. What does delta tell me?
Then what does analyzing past charts for S/R tell you? There's a difference between using Delta to gain INFORMATION such as critical zones vs. using it for a red light/green light approach. Watching price real time, unless you are a scalper, has no benefit without knowing the context of what you're analyzing. I.E. whether price is in an important zone. I think of delta as "modern day" tape reading that offers not only an illustration of the tape but its historical context plotted on the chart as well.
Sorry.....if the left lane is too fast for you just move aside, faster traffic coming through......... http://video.google.com/videosearch?q=super+bon+bon&emb=0&aq=f# No sense sitting around holding up the fast lane......MOVE ASIDE, LET THE MAN GO THROUGH!
Just compare your zones with a more traditional method, like P&F or trend lines etc... Do you see that delta gives you zones not seen by the older methods? Tell me why will there be an important delta at levels not seen in a simple bar chart? Are you saying that there will be a significant selling delta no seeing in the price action alone? If so then just post the chart. In few words you are saying that the price action is false. When the price goes from 905 to 910 your method tells us that this is wrong. It "should" have gone to 900. If so then good luck.
Quote from AMT4SWA: .................................................Delta is volume parsed by those hitting the bid or ask with market orders......those entering the market where "get in now" is more important than what price they enter into the market at. I want to measure the "ENTER NOW" crowd more than I want to measure the "WAIT FOR MY PRICE" crowd, or URGENCY over PRICE.......that is how I visualize it. AMT This is a deeply flawed statement and is completely wrong. If anyone following this thread has any interest in taking trading seriously, I would strongly recommend talking with your data providers and charting suppliers in order to completely understand the base information that forms your information building blocks. I cannot emphasis strongly enough the pressing need to understand the fundamentals of market structure and market data before you attempt any strenuous with the output. goodluck regards f9 ::::::::::::::::::::::::::::::::::::::::::::::: Quote from AMT4SWA: Just to be exceptionally CLEAR......DELTA is not an INDICATOR......created from PRICE and LAGS. DELTA is VOLUME......REALTIME, just parsed to show the conviction within the order flow.......REALTIME! This is an incorrect statement. The bid - ask is coming from the quotes and your Chartist is making an assumption on your behalf by applying it to volume. :::::::::::::::::::::::::::::::::::::::::::::: If you guys want to make a decent living from trading, somehow you need to leave your emotions outside the door and focus solely on the reality of your situation. Do this and one day you will come to realise that the only thing you can trust happens to be the only thing you can trade ...PRICE regards f9