What is DEMAND/SUPPLY volume?

[wunderlich]

"..show a 5000 Constant Volume candle, with the Bid/Ask volume in the middle pane, and the Bid/Ask volume based on the uptick/downtick interpretation."



Mister Ed, your charts #34 are perfect!

One is clearly seeing when more “buyers” or “sellers” come in - it is showing low and high tide.

It would be very interesting to “see” with market profile eyes, at what levels buyers and at what levels sellers mostly came in.

So this could indicate their pain levels.

Perhaps you can plot your charts again with separated volume profiles (one for bid and one for ask volume), to see this?

[BlowFish]

	Quote:	zdo
	A few days ago I asked the question “What is delta divergence?� It was a serious question. To clarify – Is it simply divergence in directions btwn price and delta (as when TickMoneyFlow is going down and price is going up)? OR Is it ‘classic’ divergence (like higher price on this swing than last with a lower indicator high than last indicator swing high. etc) ? OR Is it delta diverging from total volume in balance? OR Something else? OR Was it just a totally stoopid ‘them what just don’t get it’ question ? That’s always a possibility with me … and btw I don’t know where TL came up with an IQ of 59 for me. This traders IQ is not 59 I taked this test and thay sed my IQ was 64 not 59 that is insulding and you put it up wer evrybodd can sea Anyway bump to the question - What is delta divergence? And thanks!

Depends a bit on how you plot! The chart I am proposing you would see price making a higher high and the delta (cumulative for the day) make a lower high. Trouble with this method of displaying delta it sometimes goes completely in the oposite direction of price.

You could do worse than search over at ET for posts from a user called '5pillars' with 'delta' in the text. He has posted many examples of delta divergence followed by zero line cross. He resets the delta each bar though. (I think this may be what you are talking about its simply a graphical representation of the delta number at the bottom of each column).

Cheers

[BlowFish]

heres a chart for today delta in bottom window. Today was a grind down so not a great example.

[mister ed]

Thanks BF for the chart and also the reference to 5pillars on ET. I am with you on trading the divergences - not something I really want to do but the method used by 5Pillars seems to be a good one along those lines.

Wunderlich - I don't think it is possible to do a volume profile with only the bid or offer volume unfortunately.

[darthtrader]

Here is something interesting from marketdelta on YM this morning. I hadn't noticed that its also plotting delta by price along with the column delta which is a delta by period. In some sense, especially if your into MP, delta by price probly makes so much more sense than delta by period.

[mister ed]

	Quote:	darthtrader
	its also plotting delta by price along with the column delta which is a delta by period. In some sense, especially if your into MP, delta by price probly makes so much more sense than delta by period.

This is probably along the lines that wunderlich was looking for.

[wunderlich]

	Quote:	mister ed
	This is probably along the lines that wunderlich was looking for.

Yes, but in combination with Constant Volume Bars (CVB: cf "ProfLogic" at ET-Board).

With Constant Volume Bars (CVB) = you can clearly see the trend of the market.

With MarketDelta Pricelevel-Delta = you can clearly (?) see demand / supply.


Together plotted one could have maximum market generated information with minimum chart complexity.

[mister ed]

	Quote:	wunderlich
	Yes, but in combination with Constant Volume Bars ... Together plotted one could have maximum market generated information with minimum chart complexity.

Wunderlich, what you want can be basically achieved with the MD program.
The columns you can see on DT's charts from the MD program can be set to a constant volume value, so you would not be looking at CV bars, but at CV columns on a footprint chart - the column is equivalent to a bar anyway, its just presented a little differently.

[BlowFish]

	Quote:	wunderlich
	Yes, but in combination with Constant Volume Bars (CVB: cf "ProfLogic" at ET-Board). With Constant Volume Bars (CVB) = you can clearly see the trend of the market. With MarketDelta Pricelevel-Delta = you can clearly (?) see demand / supply. Together plotted one could have maximum market generated information with minimum chart complexity.

Not maximum as you essentially loose the time information. Horses for courses though. CVB's do make nice smooth charts thats for sure but the spikes and sideways formations you get on time charts tell a story (to me) that gets diluted/obscured on CVB's. Bills a smart guy, but somewhat over zealous in his promotion of CVB's (in my opinion).

[darthtrader]

	Quote:	BlowFish
	Not maximum as you essentially loose the time information.

Thats interesting, I would be interested in hearing how you view the time information as far as this stuff is concerned. I have really been wrestling with this lately as to the utility of time information, I'm just not convinced its really that usefull but might be missing something.

Here is a chart from this morning that I had been waiting to see from reading Dr Bretts market delta posts on his blog. The top chart is all trades, the bottom is filtered to only 10 lots +. Its pretty interesting in that the smaller traders drove price up but were basically just providing liquidity for the larger traders. If you were only watching the deltas of all trades it would just look like the ask was getting hit but the larger traders were hitting bids all the way up. After that chart the larger traders just kept hitting bids and drove price down. pretty interesting information.