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The non-cumulative delta is the difference between buys and sells for each bar. so this is similar to Gomi's CD indicator in non-cumulative mode. But we are showing buy and sell volumes, not delta. Non-Cumulative Delta is buy volume minus sell volume for each bar.
The buy and sell volumes in BSVTG3x come from the same place that GCD gets them from.
The idea of churn is volume that doesn't go anywhere, because the buyers and the sellers are deadlocked. Higher volume, less difference between buy and sell volume as a fraction of total volume, and less range denote higher churn.
I hope this turns out to be useful, and certainly would appreciate any feedback.
I wouldn't say deadlocked, it simply means that neither side is being aggressive. I haven't seen any significance when the buy volume & sell volume are equal but I haven't really studied the issue.
The word "churn" can be confusing if we use it in different contexts. In this thread, I have used churn for when price doesn't move much. There can be lots of buying or selling volume and still have churn. In fact this is the most interesting for me, when there are lots of aggressive buyers or sellers and price doesn't move. It means they're running into supply or demand.
I do agree with you about running into supply or demand. Or it can mean that both sides are being aggressive. In any event, it shows a good time to be alert to the possibility of a reversal.
I think we can agree on one of characteristic of churning is price stay within a narrow range of (open - close). Or demand is filled by hidden supply or vice versa, maybe this pic will illustrate my point.
Thanks Cory. That is the very essence of churn: a high ratio of volume to range. Lots of trading with little price movement.
When this happens, the buying and selling volumes (as determined by trades at or above ask and at or below bid) tend to be pretty close to each other, based on my real time observations.