Discussion of article "Developing stock indicators featuring volume control through the example of the delta indicator" - page 4
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Alexei, no offence. But, averaging data is not the way that leads to our goal).
Understanding the market is the right way. IMHO, of course.
Well, let's talk about the "right" way.
How do you see the use of the indicator?
I have made its display in per cent, thus removing the dependence on the volume delta, maybe again in the wrong direction....
Alexei, I didn't call you anything. Do not take my criticism as an attempt to offend you. I am just trying to clarify the logic of the indicator's operation. And the logic, in my opinion, is to find an imbalance of effort and result. And in this case, you need to compare "pure" data. As one of the options, compare the data of candle size and delta size.
Of course you didn't, you just made a conclusion that my ideas come from not understanding the essence of the indicator.
How do you propose to use it, are there any patterns that are stable on history?
Why doesn't the indicator work when the market is closed (9:27)?
Why doesn't the indicator work when the market is closed (9:27)?
Click the refresh button one or more times... it should load. It is not always possible to get the tick history immediately after market close. Also - it is not always possible to get the whole history at once and draw the indicator right after the indicator is installed on the chart.
How do you propose to use it, are there any patterns that are stable on history?
I've written this earlier:
The most obvious one is to turn on a minute chart and see how the market behaves after delta spikes. Most often, at least a correction occurs.
That is, the indicator can be used as one of the precursors of a reversal.
You can watch "divergences", i.e. formations of this type:
There is a renewal of the day's extrema, but there are fewer sellers.
Click the refresh button one or more times... should load. After market close it is not always possible to get the tick history at once. Also - it is not always possible to get the whole history at once and draw the indicator right after the indicator is installed on the chart.
So the terminal did not close - overnight everything is gone.
I posted this earlier:
The most obvious thing is to turn on a minute chart and see how the market behaves, after delta spikes. More often than not, at the very least, there is a correction.
I trade on minutes, generally included.
I.e. the indicator can be used as one of the precursors of a reversal.
You can watch "divergences", i.e. formations of this type:
There is a renewal of the day's extrema, but there are fewer sellers.
It is not logical, as we do not know how much one market participant sells/buys on average.
Besides, this delta is strongly dependent on the volume.
So the terminal did not close - overnight everything was gone.
After market closing it does not completely freeze - certain service operations may occur, which affect the construction of tick indicators. I.e. they can lead to the need to recalculate the indicator completely, but impossibility to get all tick data at once, respectively, when you do not see the calculated indicator data - know that it is waiting for a new tick.
After market close it does not completely freeze - certain service operations may occur, which affect the construction of tick indicators. That is, they can lead to the need to recalculate the indicator completely, but the impossibility to get all tick data at once, respectively, when you do not see the calculated data of the indicator - know that it is waiting for a new tick.
If it is not difficult, please explain why this happens, the indicator is not redrawn on the history.
And, it would be very interesting to see the market profile by prices - let's say X minutes deep with quantisation in 10 points, do you want to make such a thing?
Not logical, as we don't know how much one market participant sells/buys on average.
In addition, this delta is highly dependent on the volume.
What does one market participant have to do with it? It doesn't matter to us. What is important is that market professionals, when they see a herd moving in one direction (and if they are not in this herd) - they will try to turn the market after strong movements - they will try to "divorce" the crowd, take money from it, bring it to stops and make money themselves.
By the way, another option that can be seen with the help of delta is how stops are taken off. That is, when there is a short-term exit beyond the previous market extremum and a quick return back.
And there is no direct correlation between delta and volume. Volume can be huge and delta = 0. Simply delta cannot be more than the traded volume.
If it is not difficult, please explain why this happens, the indicator is not redrawn on history.
What does it have to do with redrawing on the history? It's all about the peculiarities of recalculation of indicators. As far as I remember (it was explained in SD a long time ago), an indicator has a cache. When this cache does not coincide with some stored value, prev_calculated becomes = 0. And a full recalculation of the indicator takes place. As I understand, this is exactly what happens when the market closes. That is, there are operations that affect this cache! But after that it is impossible to load the tick history at once. So the indicator waits for the tick history to arrive and at the moment when it receives it, the indicator will be calculated.
When you click the refresh button, you reset prev_calculated to 0! And you start the full recalculation of the indicator.
It is easier with ordinary, non-tick, single-timeframe, single-symbol indicators - there the calculation is instantaneous, because all the data for calculation are instantly available. With ticks, however, the data is not always available.