[dandxg]

I was wondering if anyone had any feedback on this software. I posted here because it appears related to MP and MD and this forum gets a lot of views.
http://www.orderflowanalytics.com/Home.aspx

http://www.youtube.com/profile?user=...wAnalytics#g/u

It kind of reminds me of Market Delta, but seems a bit different. I had a hard time processing MD when I looked at, at least the footprint. Just too much going on.

Just curious if there is any feedback on OFA?

Good trading to all,

Dan

[FulcrumTrader]

I have looked at this software in the past and in the 1st and 2nd YouTube videos they make assumptions about market dynamics that are not the reality. This companies software can be useful for a trader to continue to understand the order flow process which is always a good thing....but some of there explained set ups have nothing to do with "retail" traders stuck holding inventory that is about to go 2 points underwater (hitting stops). What they did show in the second video of three was actually a level that had an "inventory grab" event. A large group of resting LONG inventory had been neutralized (shows as HEAVY sell side action as that LONG inventory went to neutral in a small several tick range) which many times will cause a pause in the market. As sellers that had sold inventory from HIGHER pricing levels have price trade down to lower zones of resting LONG inventory, they use this resting LONG inventory as the EXIT for the held sellers inventory from higher pricing levels. Sellers DRIVE price lower to the point where they can COVER OUT into the capitulating resting LONG inventory with minimal slippage. The market is constantly trading back and forth between zones of held resting INVENTORY....once I learned this, everything then made sense to me in the "Supply & Demand" driven markets.

I myself watch this exact same information, but I use Cumulative Delta bars specifically so I can INDEX the Delta Thresholds or Zones of resting inventory. I ALWAYS want to know WHERE are participants holding resting inventory and WHAT will they do as price trades back to these levels of resting inventory (what I call REAL support and resistance levels BACKED by some actual significant inventory). I also use the Cumulative Delta bars to track who is in control of the order flow at all times and when "order flow transitions" take place....learning how to track the "Supply & Demand" driven markets imo IS the ultimate edge.

[FulcrumTrader]

As a reference, we had a key "Inventory Grab" event on Thursday during the sell off....then on Friday pre-market we had some newly initiated LONG inventory accumulation. Here is a chart of Thursday and Friday showing this "supply & demand" activity.......

Images | ChartHub.com

[Karish]

Thx FulcrumTrader

Can you explain what do you mean by cumulative delta bar

[BlowFish]

'Delta' is a term that has been coined to describe the difference between volume traded at bid and volume traded at ask. You can learn more about it at marketdelta.com. Investor RT (the charting package) has some stuff on it too. Cumulative delta just means that you are not resetting the delta (you are accumulating the net value). Some people reset it each bar (and look for divergences) some reset each session and use it as a proxy for order flow on the day. Yet others (like fulcrum) run it from the start of the contract using it almost like a proxy for open interest.

[pfx111]

Originally Posted by BlowFish »

'Delta' is a term that has been coined to describe the difference between volume traded at bid and volume traded at ask. You can learn more about it at marketdelta.com. Investor RT (the charting package) has some stuff on it too. Cumulative delta just means that you are not resetting the delta (you are accumulating the net value). Some people reset it each bar (and look for divergences) some reset each session and use it as a proxy for order flow on the day. Yet others (like fulcrum) run it from the start of the contract using it almost like a proxy for open interest.

Any delta indicators today are lier....

[Tams]

"Lies, damned lies, and statistics"
Benjamin Disraeli

"There are three kinds of lies: lies, damned lies, and statistics."
Mark Twain

[Karish]

thx for clarifying blowfish, I though that commutative bar is referring how a new bar is contracted.