[Anonymous]

Originally Posted by Soultrader »

Ok my mistake. Let's turn this into a volume analysis thread for now. Blu-Ray pointed it out to me earlier and I actually prefer it. So basically we are seeing buyers vs sellers from Walters and Blu-Ray's indicator?

Note: I made some changes to my initial post and the title of the thread.

Sorry Walter. I was focusing on the Volume Analysis part of the thread name. I also seem to recall a couple of posts stating that the indicators where looking at volume and not tick delta. My mistake.

[walterw]

Thats not a problem Pivot, I think you got something very nice to share and its very valuable information, maybe it would be nice if you could open a new thread on this very specific topic arround vsa... it sounds to me a Wickoff type off aproach.... do you know if there are indicators on this aproach for TS... ? I encourage you to keep sharing this very nice information on Volume... I think, maybe I am wrong, that this thread would be only on deltas.... but please keep sharing, very good stuff yours, cheers Walter.

[walterw]

Ok, I am going to explain very brief how the Volume Delta Oscillator works...

If you look on a chart at both Volume Delta (VD) and Volume Delta Oscillator (VDO) and if you put the settings on the VDO at 1-1-1-2-1-1-100 then you will have a "raw" VDO... the VDO refers to an aditional information that the VD doesnt show so clearly... lets say for example you got on VD a green histogram on top, ok... but whats the size of that green vs the red part of the histogram, what is the diference.... lets say you got a histogram of 100 contracts and 80 where green and 20 where red... well thats quite bullish... would not be the same if 55 where green and 45 red... so here comes the VDO... it will measure the difference of the green vs the red on the histogram... it will show the "degrees" of Buying and selling going on... what I love to see here its that we are not only taking into acount delta but also volume itself... the oscillator is going to show the intensity or commitment of volume into a buy or sell move... so we know "HOW MUCH" and from "WICH SIDE" .... now the raw parameters on the VDO its just to take a look how he works on taking the differences of green vs red on VD histogram... its a nice excercise to understand how the indicator works... now a raw parameter I find it useless, it negates the cyclical factor of the market... so if we put some higher inputs to the VDO, we will take into acount what happened in the X previous period as to the money flow of the market... this can be very usefull to see in a very clear way again the true flow of money from a volume and delta point off view.... I attach both examples raw and with parameter
1-3-2-2-8-3-6 in Russell 110 t chart...

about aplications, well there is a lot to be said... cheers Walter.

[walterw]

On the coding forum I did present the Volume Delta Cumulative... its something new I am experimenting on... there are multiple aplications to this indicator.... one I found today and sharing the spirit of failed Breakouts presented by Soul is how this indicator during the false break he did not validate the break... as you all know I do work on small time frames, that doesnt mean you can not apply this to a higher time frame, I attach an example today of how on this very range bound market there was so clear opportunities to get clearly in... I did papertrade... and must say it was a confortable experience... cheers Walter.

[bradipogs]

where can I find cumulative volume delta ?

Thanks

[LS_Chad]

Investor/RT - Answers* (LinnSoft.com)