A question if I may Bolter. Your chart of 10/25. What is the open, is it the highlighted 84.50 and what is your time zone along the top header?
Hi guys, I thought I'd share how I'm using delta charts these days... Basically I'm using them as a very short-term S/R tool. As you can see I'm using it in histogram view. Allow me to explain. In this view, each bar gets a miniature POC. What I'm looking for is previous clusters that are within 1-2 ticks of each other. Often there will be 2 or 3 POCs right at the same price with another one flanking above or below it. These are great zones to anticipate pullbacks to stop in. In this example, we stopped just below it, but sometimes you will trade very light through it before turning. Either way...low risk and clear stop if it is wrong. I tend to prefer slightly bigger timeframes when using a chart like this, because if it is too small, then the volume POCs don't seem to mean as much and little clusters appear at virtually every price level. Hope this helps someone. Kind regards, MK
Excellent example MK, do you run charts as well alongside your histo. Might be interesting to post a chart alongside your footprint or is it possible to have a candlestick overlaid on your histo charts. If you go back in time, can you see that 16845/50 was going to be a line of hesitation? Must say, I am surprised at the lack of interest in this thread. Maybe it is just me, but the impact of volume on price action is the heart of seamless trading in my opinion. At the risk of a flogging, might I suggest that you give serious thought to the flow of volume coming in and out of your tradeable. How much and what side is it on. Now that you are cottoning on to the appreciation of price clusters around s&r you might care to see whether this little puppy wants to run or reverse. Bolter has started a great thread here and like many great threads on ET, it will be measured by its lack of appreciation and understanding. On the one hand you might say that this is a great pity. On the other hand 5% of the people walk off with 100% of the money and so this is good. I would also like to add if I may "Think big" Think like a 100+ lot trader as it changes the picture dramatically. It is all about and only about risk management. Everything is a tool and a slave to RM. RT/MD is a good tool and just because I dont use it does not mean that I cannot appreciate it.
Hi fearless, The open is within the range of the first column of footprints - 82.50 to 83.25. The highlighted price (83.50) is the last traded price. My timezone is GMT+8 - Singapore. bolter
I have been following this thread hoping to learn a thing or two about MD; however, the charts are foreign to me. Therefore it might be helpful to me and others if someone could briefly explain how to read a MD chart.
MK, Excellent post. This is exactly the sort of exchange of ideas that I had hoped this thread would generate. For those people not familiar with this type of chart - it is a footprint but with the deltas represented as histograms. The horiz length of the bar indicates the relative volume, with the highest volume price in the column bordered - what MK refers to as mini-POCs. The colour/shading indicates the amount of implied buying/selling. You've shared this idea with me MK in a chatroom and I can attest to it's effectiveness. The volume histogram on the left is great for S/R levels, and watching the flow of the mini-POCs provides an excellent feeling for the action. Thanks for sharing MK. Give my regards to Mrs B. bolter
K-Rock, There are a bunch of great videos on the Market Delta website (www.marketdelta.com) that will get you up to speed on footprint charts. Good luck. bolter
Hi bolter, I am half-way reading into your MP thread and it is good. Thanks I tried a few days ago using the filter (anywhere of < 20-50 contracts) for ES. I plot them with and without filter and I don't think it makes too much difference when compare (they turn at the same time). I also compare the buy volume vs sell volume with and without filter against each other but there seems to be no "new" information given more than just the plan MD without filter. But I now do plot the buy/sell graph separately with filter and just to observe how absolute number of the bigger volumes coming in One rough idea I am playing with right now is looking for sign of "persistency" in buying pressure and selling pressure for trend following. One way would be using consecutive bars of smaller time frame as cue for trend change in a "good" market. Regards, William