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do gaps in cumulative delta mean anything?


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do gaps in cumulative delta mean anything?

  #1 (permalink)
whats1thingnow
Whistler, BC
 
Posts: 34 since Dec 2015
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Hello,

I love the cumulative delta and find it extremely useful in terms of reading buying and selling pressure.

However, I recently stumbled upon the idea to graphically show gaps in the cumulative delta charts...

Just thinking out loud here, but I guess these would show there is so much buying or selling pressure that it was enough gap (hence huge momentum)? But I haven't looked into it enough to see how useful this would be in real-time trading...

Anyone have experience with this?

Thanks in advance!

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  #3 (permalink)
 markus3500 
Cleveland OH
 
Experience: Intermediate
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whats1thingnow View Post
Hello,

I love the cumulative delta and find it extremely useful in terms of reading buying and selling pressure.

However, I recently stumbled upon the idea to graphically show gaps in the cumulative delta charts...

Just thinking out loud here, but I guess these would show there is so much buying or selling pressure that it was enough gap (hence huge momentum)? But I haven't looked into it enough to see how useful this would be in real-time trading...

Anyone have experience with this?

Thanks in advance!


Can you elaborate on what you mean by gaps? pics? time frame? I trade with CD a lot on both 24-7 and rth thru multiple time frames and not sure what you mean by this.. there shouldn't be gaps anywhere to be honest. Cd is continuous.

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  #4 (permalink)
 
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 josh 
Georgia, US
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whats1thingnow View Post
However, I recently stumbled upon the idea to graphically show gaps in the cumulative delta charts...

More than likely you saw a chart which reset the value to zero at the start of the next trading session. "Gaps" in prices traded occur on a second-by-second, minute-by-minute, and day-by-day basis because the market, defined by the inside (best) bid and offer, moves constantly and each tick (the smallest increment of movement for an instrument) need not trade. But there is no notion of "gaps" in a metric derived directly from volume; the idea just doesn't make any sense.

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