[TheNegotiator]

Yes, I understand it's used in various different ways. Option delta is the obvious one. However, generally in trading it is used it terms of difference in market executions at bid and ask. Order book delta is an interesting thought though, but I am sure there are many of different considerations using this method. Like for example whether it is open to manipulation. If you don't have to even place a trade, manipulating become much more viable if it works...

[johnw]

Originally Posted by joshdance »

Well, "delta" just means "difference" or "change" in math terms, so really the bid/ask volume difference guys just commandeered exclusive use of the term ;-) Seems like I've heard that word before somewhere else... an airline, or a letter, or... ah nevermind.

Try to remember the golden rule ... IF YOU CANNOT SEE IT IN PRICE AND IT ADDS TO YOUR DECISION MAKING, THEN INCLUDE IT ON YOUR SCREEN.

If it is in the price but you decide to add it anyway THEN LEARN TO READ PRICE

Trust me, this is the best path.
There are not many many ways to trade.
There is the best way and then there are other ways ...and so this is yet another leap of faith.

You will not know this until it happens to you within the circle of understanding.

LESS IS MORE

[BlowFish]

Originally Posted by TheNegotiator »

BlowFish I agree. Like I mentioned earlier in the thread though, I also watch the quality and flow of the CD to monitor for algo/otf activity. I find it is a good tell and a useful visual tool in addition to specific value or value comparison techniques.

The trouble is (and this is through casual observation, albeit a lot of it) at interesting points is where things can be difficult to quantify. For example price can be halted an turned in a mix of two ways buyers can withdraw or sellers can hold firm or be prepared top offer lower. Of course in practice it needs a mixture of the two. Delta is not so good for revealing magnitude though plotting volume alongside helps. Plotting positive delta and negative delta separately might also reveal what's going on better. Another interesting metric is measuring 'delta shift', so you essentially reset delta when price makes a high or low measure delta from that point.

[BlowFish]

Originally Posted by johnw »

Try to remember the golden rule ... IF YOU CANNOT SEE IT IN PRICE AND IT ADDS TO YOUR DECISION MAKING, THEN INCLUDE IT ON YOUR SCREEN.

If it is in the price but you decide to add it anyway THEN LEARN TO READ PRICE

Trust me, this is the best path.
There are not many many ways to trade.
There is the best way and then there are other ways ...and so this is yet another leap of faith.

You will not know this until it happens to you within the circle of understanding.

LESS IS MORE

Absolutely!
................

[TheNegotiator]

I definitely agree with you guys here. The fact is any indicator is always subjective if only just because the one thing you generally can't see on a chart is the guys who are waiting on the sidelines preparing to make their move. Everything has to be viewed in context and assessed as a continuum of probabilities. Trading is about thinking. Methods may help traders think more incisively but most just want them to tell them what to do and when. To me, this is the holy grail that doesn't exist.

[thc]

I don't think johnw ever expounded on the concept of seeing selling initiative at the ask and buying initiative at the bid, rather than vice versa, via observation of the 1 tick chart.

Did I miss that?