Today on Trade Talk: A Leading Technical Indicator for Charting in X_STUDY®: TT CVD®

<i>The following article originally appeared on Trading Technologies' Trade Talk blog on January 16, 2013. Click <a href=http://tradetalk.tradingtechnologies.com/>here</a> to visit Trade Talk.</i>

A Leading Technical Indicator for Charting in X_STUDY®: TT CVD®

X_STUDY charts offer more than traditional bar data. Along with the open, high, low, close and volume for each bar, X_STUDY provides additional data points, like the total number of market sellers hitting the bid, or bid volume, and the total number of market buyers lifting the offer, or ask volume. As explained in my last blog, these bars can be time-based or volume-based.

Today I’d like to talk about TT CVD, a true leading technical indicator that works off these powerful market data points.

You might be thinking: “All technical indicators are lagging indicators.” But after you see how TT CVD is calculated, you will probably agree that this is a leading indicator. It can complement just about any trading strategy, too.

<b>TT CVD Overview</b>
TT CVD uses the bid and ask volume data to display the running difference of the ask volume (the market buying pressure) minus the bid volume (the market selling pressure)—or, in short, the cumulative volume delta (CVD). Let’s walk through a real-world example to illustrate how TT CVD is calculated.

Figure 1 below shows a chart of the December E-mini S&P 500 contract with three studies. The first, Volume Delta—Histogram, displays the total bid and ask volumes. The second, Volume Delta, displays the difference of the ask volume minus the bid volume. These two studies will help me explain the third study, TT CVD.

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Is this somewhat equivalent to CQG's TTFlow charts? Do you have a timeframe when TT analytics will be available for advanced timeseries? (I understand its a work in progress)

 

Hello Eyez,

Thanks for your interest. Our X_STUDY product manager has some follow-up questions. I'm wondering if you're willing to share your email address. I sent you a DM, so you can respond privately to me there.

Thanks and have a great day.

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