well, key reference areas (support and resistance lines, market profile levels) etc. are not lagging indicators. if you consider them "indicators" look at it this way. assume a 1 pt YM spread. there are bids down the line from the inside bid down there are offers up the line from the inside ask up for ANY trade to take place, SOMEBODY has to make a market order. somebody HAS to lift an offer (exchange occurs at the ask) or somebody has to hit a bid. period. yes, sometimes ( a relatively small %age o trades with YM) a trade occurs between bid/ask. that happens when the spread goes beyond 1 tick and 2 peopl emeet in the middle but regardless, THAT is what differentiates (for the purposes of marketdelta) buying vs. selling pressure it's also what every tape reader worth his salt pays attention to also. ALL marketdelta is - is a way of compiling and visually representing the relationship between buyers and sellers (as defined by those lifting offers vs. hitting bids) it is something most tape readers (myself included) watch. it's just a question of whether you want MDelta's representation of that data.
Think of MD as car, just because you bought a car does not mean you know how to drive. Read Mind over Market, check out www.cisco-futures.com, subscribe to chat rooms that use Market profile for trading. Once you have a good understanding of how auction Market works you will know how to use MD to improve your trading. Market Profile takes about 6 months just to have basic understing of how to read the markets correctly. I am still learning about market but Market Delta gives me an edge compare to the technical indicator that I used in past. Learning technical indicators is much easier compare to Market profile. If you are doing well and making money everyday then stay with what you are doing otherwise give it a try.
This was a quote from whitster in 2006. I'm thinking of trialing Market Delta, can someone tell me if this is true today as it was in 2006? I.e. "it will not work with IB since IB aggregates data"? Cheers Carlton
I believe this is still true. DTNIQ data feed is the best. If you do a trail, zenfire provides free data but no historical backfill.
BTW, word in Chicago is MD will have a very nice DOM in the next month offered (I have talked with several traders out of Chicago who have mentioned this to me)!
Just as "Bearmountain" said, ONLY use DTN.IQ feed if you want to do any work with BID/ASK differential (Cumulative Delta). All the broker supplied datafeeds are junk for any charting which has BID/ASK differential tools onboard ("Footprint" charts, Cumulative Delta candlestick, etc). Chart with Cumulative Delta candlesticks (with DTN.IQ feed)............. http://www.charthub.com/images/2011/07/04/ES_Entry_M3.png
No....in extensive multi-year testing DTN.IQ has no match at this time (for a proper BID/ASK differential data feed connected to MarketDelta.com or Investor RT Pro).