Trading Flow technique by

Discussion in 'Educational Resources' started by ozzie_bozo, Mar 24, 2006.

Is Trading Flow a new idea?

  1. New idea

    0 vote(s)
  2. Old idea

    4 vote(s)
  1. Seeking opinions on's "Trading Flow" approach (as contrasted to money flow).

    Is this old hat? Is it an old approach with a new name? Or is it novel?

    All input appreciated. (I was unable to get any info on Elite Trader by searching for "McRibel" and for "Trading Flow".)

    Here's the link:
  2. cashonly

    cashonly Bright Trading, LLC


    Doing it that way seems like it would take a BOATLOAD more data than classic money flow. Not only do you need tick data, but also bid and ask.

    And how do they take into account trades that go off outside the NBBO (people getting screwed or negotiated trades)?
  3. Thank you much for your feedback, Cash. Given your position with Bright Trading, I know your impressions are based on a LOT of experience.
  4. mujoh


    This kind of indicator has been 'introduced' some months ago in the Active Trader Magazine. There they called it 'Cumulative Volume Delta (CVD)'. Maybe you can find there additional information.

    The problem is the data you need for the calculation. As cashonly already mentioned you need to know for every tick whether it was at the bid or ask price.

    Tradestation for example is not able to gather this information.
  5. CVD was actually developed at TT an is available in XStudy (the free charting package that was just released with xtrader 7.0)

    XStudy collects the bid/ask info required.