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Chouca

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Posts posted by Chouca

  2. Posted

    Had to jump right to the charts... A mini study shows that as an example the high 29:th of June 14:13 - 14:27 of the ESU0 (1min) showed the price stop at 1044 at 14:13 trying again a number of times dipping down to 1041.5 14:21, up again to test 1044 last try 14:27.

     

    The CumDelta was 6000 LOWER on the last summit attempt 14:27, telling a story of market orders at the bid during this periode, and then ES went down.

     

    Have to learn how to post charts to get it easier to follow...

  3. Posted

     

    Prior to that, the market chops around the high so the cumulative delta would not be extreme, I think.

     

    Thanks ant,

     

    I just believe that in order to the resistance to be "established" at a certain level, and stop price from going higher, the buyers do market orders but there is always enough supply to "eat that" buying up and price cannot go higher.

     

    I have not studied CD from this aspect, I will switch to the trading laboratry and see what it might look like in the charts.

  4. Posted

    Think about the cumulative delta when a market keeps testing a high/low and can't get through it. What would the cumulative delta look like in that case? Although, I didn't cover stealth short-covering or stealth liquidation, the cumulative delta would not ring a bell in that case either.

     

    I will think out loud - have mercy...:confused:

     

    Let's say a the markets tries to test the high with no success creating the P-profile.

    The reason it cannot go higher is that the other time frame participants is always assuring plenty of supply at the level that becomes resistance. If there always is supply the buyers will hit the ask and the CD will go up, but price will not?! :hmmmm:

  5. Posted

    Detecting inventory imbalances is an excellent skill to have as a trader and MP could help and so can regular bar charts. Things to look for are similar highs (i.e., markets that keep trading to a high or low but can't seem to break through) or looking for a b-shaped or P-shaped profile. There are other ways that these imbalances can manifest themselves, but they are a bit more trickier, such as what Dalton calls Stealth Short-Covering, which isn't covered in the book.

     

    The b and p profile is quiet easy to spot. I will try to find out what the Stealth Short-Covering means.

     

    Is the cumulative delta another way to see these imbalances and in that case how does it show?

  7. Posted · Edited by DbPhoenix

    Thanks Fulcrum,

     

    I am familiar with the Cumulative Delta, and I have started to study it in my charts.

     

    you will see the Delta Volume Distributions built from areas of price with resting held inventory.

     

    To know the exact pricing levels or zones of price where significant accumulated inventory is resting has distinct advantages. Cumulative Delta can then be used as a mechanism to track intraday open interest as the market trades back and forth betweens zones of resting inventory. These easily determined zones of significant resting inventory imo are the only real support or resistance in a market (where large participants have their butts on the line with real held inventory).

    Sorry I still don't follow, I see CD follow the price movemenent or diverse from price movement either up or down which shows how the "market order" participants act at certain price levels or at news releases.

     

    But how do You determine the areas of price with resting HELD INVENTORY???

     

    [As interesting as this discussion may be, it's not particularly pertinent to Wyckoff's approach. I suggest that those who are interested in cumulative delta initiate a thread in the Technical Analysis forum.

     

    Ed.]

  8. Posted

    Fulcrum,

     

    Very, very Interesting - I want fully to understand what you mean; :confused:

     

    The Cumulative Delta tracks the cumulative number of "aggressive buyers" grabbing the offer MINUS the aggressive sellers grabbing the bid, right?

     

    What you get then is a number that shows if there has been mostly "aggressive sellers or buyers" during some time period (or from contract start).

     

    At the lows in the ES today the market had just neutralized the very last significant LONG inventory which had still been held in the market

     

    Do You then mean that the Long inventory is back to "neutral" as the cumulative delta crossed the 0-level at around 13:41???

     

    It is just so interesting to watch how right as the last available LONG inventory goes to neutral how the Equities SELL program activity shuts down (happens frequently.....why I love to track the Cumulative Delta)

     

    Do you see clues in the market that as the cumulative delta gets very positive sell programs turns in and sells aggressively?

     

    In the chart - how do You set the level of "Lowest Delta Threshold of Remaining Inventory"?

  12. Posted

    I have now a demo of the OEC MD Footprint so I can answer my own question :)

     

    No - The OEC version has not Market Profile. '

     

    What you get is the footprint chart. My initial feedback is that it is valuable as you see whats going on inside each bar.

  17. Posted

    I struggled to sort out the Show Case function in OEC - the documentation isn't there so it wasn't obvious...

     

    Anyway, as an example to point out the bars with volume lower than the previous two bars, insert Custom Indicators, Show Cases.

     

    In the condition field : (volume < volume[1]) && (volume[1] < volume[2]).

     

    I tried with the AND statement instead of && - but it is C-language NOT EasyLanguage....support helped me to find out...

     

    Choose marker Size and style as desired.

     

    In the "where to show" field I tried to put high + 0,5 but that doesnt work - why I don't understand - anyone...???

     

    I put in high + ticksize instead and that puts the mark two ticks above the high.

     

    Martin

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