Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
The prior day's low is run. The market maker's target is achieved.
I am bearing the assumption that the last down leg is the selling climax marking the session low.
Hence read the tape closely when it pulls back to retest the low to monitor the presence of strong held bid or aggressive buy orders.
When you say "The prior day's low is run. The market maker's target is achieved." - why it should be their target?
And speaking of this divergence of price vs cumulative delta - could it be a sign of stronger limit orders hence "professionals" more interested in selling at the moment? Because sometimes I'm confused when I see such a divergence for long time, say half a day. Not sure how to properly read it.
A potential h pattern at the low -- a selling climax + a retest/stop-run of the initial low.
Plenty of stops are triggered below 80 level. Now the book is much lighter in terms of the concentration of
weak longs.
Thanks for the reply.
The prior day's RTH high and low are significant visual references behind which are plenty of stops of weak hand traders hiding.
The market maker are fully aware of that fact, hence constantly run the prior day's high/low and other structural levels where there is a high concentration of stops.
If you don't believe this, just open up your DAX and 6E chart to mark out the days when the prior day's high or low were run and immediately reversed from there. Those are typical market maker activities when they are on the other side of the stop orders.
About the cumulative delta. There is no fixed rule on how to read it. The crucial part is to read it with a context in mind.
In today's DAX market, it is very clear that the impatient traders were bullish about the market while the market makers or other institute are selling in the limit. Hence you can see the cum delta as effort. If there is a lot of effort but no result then it says about the lack of strength on the market buyer side.
If the buying effort finally resulted in a big flush, then it is telling the limit sellers are given up. Well, today it is clearly not the case. The limit seller is way too determined for the marker buyers to crack. It could be due to the fact that the institutional traders are finally back from their summer holiday's.
1. From how DAX has traded this morning, the probability is very high that the major double bottom formation on the daily chart at 12100 is the next target.
2. ES is trading at the lower edge of the week long range. The risk and reward of taking a long scalpe from 2895 is quite good. But I just can't ignore the probability of this range being a distribution range. So far 2895 has held for the third time, but the strength of the support is gradually slipping away.In a bullish scenario I would like to see a deep stop run in the cash session below 2895 and quickly stand back above that level creating a selling climax on the chart. That is when it is OK to take long against that level. Otherwise, it would be a beginning of a sizeable long liquidation.
How do you work with cum delta bars? I mean every time I reload a window for some reason (you can't have too many of them otherwise Ninjatrader just freezes) it takes too long to calculate all bars. Do you recalculate it all the time or just keep the window constantly open with this instrument (this is what I do).
And could you please remind what program you use for VP and MP?
I am using RanchoDinero as my TPO charting package.
The Cum delta indicator in RanchoDinero has no performance problem on my side. I have loaded this indicator on 24 windows without any problem.
1. As we have hypothesized yesterday that DAX is very likely to break 12100 prior major swing low.
It has been broken in today's London session, but there is no follow through to the down side. Instead there was a bullish hour bar shooting up from 12080. This is saying to me that the probability of a total break down in DAX has decreased dramatically. Instead there is a significant chance that DAX is going to stage a major reverse from this level on. Of course, it can not pull off from here without some bullish developments in US equities. Hence the price action in today's NY session is really crucial to the prospect of DAX for the coming days or even weeks.
2. So far, ES refuses to break down. Even at such a high price level, there is still plenty of support behind the three successive lows. If ES would break back above 2900 level in this session, the formation would turn into a bull flag.
