Market Delta by bolter

Bolter

The loaded boat followed by a very strong contrary move is just how the day turned
out, the rats all must have jumped ship.

Theres a lot more subtlety in md than i had supposed and this thread is providing
some excellent insights. Thanks

 

5Pillars,

Alright, I'll do my best to talk about the ER2 trade this morning and hopefully I make sense. I'm going to attach two charts, one is the market profile I was looking at and the other is just a candlestick with the delta plotted on the bottom.

We opened above value in ER2 this morning so I wanted to see if new value was going to be established or if price would be rejected back into the old value area. Price got rejected and traded back down into yesterday's value area. Once there were multiple TPO prints in yesterday's VA I was looking to get short near the top of value and make a play for the value area rule. Everyone who knows market profile knows that that is and this isn't a MP thread so I won't get into it.

When price retraced around 9:30 central time there was a delta divergence which gave me the confidence to short at the top of value and price subsequently went down to the bottom of the value area.

I think I use delta the same way it sounds like most of you do. I get my levels using market profile and also use profile theory, but then I use the delta to give me that little extra confidence to get into the trades. Hope this all made sense!

 

Would have helped if I had posted the charts! Here they are.

 

And here is the market profile one:

 

Very good signal after HOD re-touch............

http://www.charthub.com/images/2006/11/16/ES_317_VB_4.png

NYSE and Nasdaq A/D lines at trade entry - they confirmed to take a shot also..........

http://www.charthub.com/images/2006/11/16/AD_Track__2.png

NDJeff7 - yes what you explained made perfect sense to me....good entry determination imo.

 

There was also a short signal in the ER2 at that same time as the ES. We touched the top of that value area around 796.00 and there was a big delta divergence.

 

Yes....I can see that on my charts for the ER2......your in right?


I am going to hold some of my SHORT position with a stop at 1406.00 since it is later in the day......see if I can get a run down to the 1401 to 1402 level for another test of that area.

 

I wish I had been in, I was fighting with a few oil stocks at the time and didn't see that setup until after the fact, still a learning experience at least.

 

Guys can we stay on topic please.

 

Got it....I am going to look for a SHORT again above 1407.00 if we can get back up there.

bolter..... YES SIR!