Here's an indicator I requested and was created by Insideday. Its a simple indicator that calculates the number of contracts at the Ask minus Bid off the tape. Basically, I'm interested in seeing if there are more lots at the ask vs the bid at key price levels such as pivots. Im also interested in seeing the difference during a tight range in anticipation of a breakout.

I personally plot this on a TICK chart and the indicator as a histogram. See attachment for screenshots.

Created by Insideday.
Please do not redistribute without the permission of Insideday.

[Tasuki]

When I plot this indicator on a 233 tick chart of the @NQ, all I get is a straight line (tradestation version 8.2 build 3896). I tried changing the settings so the "for volume use:" said "tick count" and then I put it back to "trade vol" but in both cases I got the same straight line. Now, I'm trying this late at night on a Saturday, so maybe it only works with a live chart?

[walterw]

Originally Posted by Tasuki »

When I plot this indicator on a 233 tick chart of the @NQ, all I get is a straight line (tradestation version 8.2 build 3896). I tried changing the settings so the "for volume use:" said "tick count" and then I put it back to "trade vol" but in both cases I got the same straight line. Now, I'm trying this late at night on a Saturday, so maybe it only works with a live chart?

Yeap.... he only works on live data..

try this one http://www.traderslaboratory.com/for...ator-1153.html he works on historical data.... cheers Walter.

[Tasuki]

Thanks, Walter. Correct me (please) if I'm wrong, but the Volume Delta records actual trades, buys and sells, whereas the bid/ask tape indicator records bids and asks, namely people who SAY they're going to buy or sell, but they may or may not actually do so, if they pull their bids/offers before they're executed. Am I right about this?

[walterw]

Originally Posted by Tasuki »

Thanks, Walter. Correct me (please) if I'm wrong, but the Volume Delta records actual trades, buys and sells, whereas the bid/ask tape indicator records bids and asks, namely people who SAY they're going to buy or sell, but they may or may not actually do so, if they pull their bids/offers before they're executed. Am I right about this?

NO... in this case Delta analisis is about the volume of trades that where executed on wich side (executed trades)... all trades are market from one side limit the other... the market side is considered the compulsive side (leading side) so you are basicly tracking which side the most market orders are being done... gauging the probable market bias... alias Delta... hope helps, cheers Walter.

[DIAgeezer]

For what its worth...TradeTheMarkets have just announced that they will soon be selling a Delta Divergence indicator that has been developed by MarketDelta.com for tradestation. They've not said how much they will be charging , but it'll probably be between $550-$750. Its looks very much like this indicator...however it paints a magenta or blue bar when there is a divergence between the price bar direction and the bid/ask volume.

Cheers
alan

[zdo]

What is Delta Divergence? Thanks.

[marketguy]

It would be so fabulous if someone could add dots indicating divergence at new highs or lows. It is so easy to miss without them. The Market Delta version also allows an audible alarm to be set in addition to the dots.

Thanks

[mishnas]

I've been watching this indicator on a 5-min chart and it seems to work beautifully. What is the advantage of ploting it on a tick basis?