Re your question, the usual explanation is that aggressive buyers (eg) met much bigger passive sellers. So the positive delta piles up until they are finally exhausted, and then there's no one significant left to buy. So price drops easily on 'normal' delta. This can obviously happen over several price levels (and throughout the day).

But there is also a lot of hedging going on in futures, and that is non-directional.

Three points I'm hoping you can help with DB.

I'm looking at reviewing your tools, can you advise me on the best way to demo your full functionality.

Secondly, I'm planning on using a CQG feed for live/hist data, on your website you mention this is supported for back-filling hist data, however based on uptick/downtick. My question is how this differs from using IQFeed as the OFA datasource. Note: As I may add a secondary IQFeed but want to asses the benefits against the cost (e.g., whether CQG will do).

Finally, how do the NT8 changes impact you, are you working with the vendor already, or where does this fit into your plans going forward? This hopefully will cover some of the historical data access issues a lot of people have found in the past for order flow based tools and open your product up to a wider list of users with non standard data setups.

Let me know your thoughts on these questions and if you can assist in getting me setup for a trial.

Thanks,

Sand.

Hello ...

I have been watching a number of DB's video, and I figured I could try to program some of the information he presented into Sierracharts.

He are some screenshots of what I came up with.

1.) The chart displays a minimum 6 tick directional move "Probe" (High-Low>6ticks) and a 3 tick reversal before a new bar is printed. The chart is build up from 1 sec time candles.

2.) Instead of the traditional same-price-level Ask-Bid delta which doesn't makes sense to DB, the colors of the markers were selected by calculating the average of the Diagonal Ask-Bid deltas within the last 20 bars.

- Diagonal Delta = current price AskVol - one price level low BidVol.
- Add up all the abs(Diagonal delta's) for each price level per bar for the last 20 bars, and make an average.
- If the abs(Diagonal deltas)>2xAvg, the color is Purple or Pink depending wether the delta is positive or negative.
- If the abs(Diagonal deltas)>1xAvg, the color goes from dark green/red to green/red.
- If the abs(Diagonal deltas)<1xAvg, the color goes from light green/red to white.

3.) If you see a triangle up, the Diagonal delta was positive, meaning more buying than selling pressure. Reverse for triangle down.

4.) If you see a greenish/purple square, this means the was more selling pressure than buying pressure BUT the price went up anyway, and a lot of traders are trapped.

5.) If you see a reddish/pink square, this means the was more buying pressure than selling pressure BUT the price went down anyway, and a lot of traders are trapped.

BTW, I still can't figure out how that works? You have more trades pushing in one direction than the other, but price goes opposite anyway ???

* DB likes Diagonal Ask/Bid ratio's, but personally I prefer to color by Diagonal Ask-Bid delta values.

6.) In blue is the highest volume Cluster, which is not the same as the highest volume price.

7.) The green and red zones are constructed by extending 3 consecutive volume clusters until they are taken out.

8.) The blue and gold zones are constructed by extending 2 consecutive volume clusters until they are taken out.

It's the first time I saw these zones last weekend, and it seems they display good support and resistance levels.
It's also interesting to see what the reaction is when they get broken.


Oil CL Futures ...


Oil CL Futures 2...


Gold Futures ...


ES


6E Euro



It needs a bit more programming, but I will use these candles in combination with cumulative delta candles and the method taught by Fulcrumtader.