Atrader.org ATRADER Interactive Charting and Trading Software

 

 

 

Volume Delta Profiling, Commonly known as Volume Breakdown.

 

Atrader supports volume delta profiling.(*) The volume delta chart is a visual repesentation of the contracts that are traded split into buying and selling. This allows the trader to determine the momentum of the trading, and make an informed decision about the implied direction of the market. This is known as leading indicator.

 

Showing the Volume Breakdown on a standard volume chart.

 

 

Here the trade can clearly see that the weighting of the trading is green when the market is rising and red when the market is falling. The total number of contracts traded at the bid and ask are shown as a separate part of the histogram, contracts traded at the ask price in green, at the bid price in red. This is true of all market activity which logically follows due to supply and demand theory.

 

Showing the Volume Delta.

 

 

Here the difference between the contracts traded at the bid and offer is shown. Again this gives a clear indication of when when the market is rising or falling. The deltas of the number if contract traded at the bid and ask are shown as a separate part of the histogram, +ve delta indicating buying, -ve delta indicating selling.

 

Cummulative Volume Delta.

 

 

Here the sum of the volume delta are displayed together with a moving average.

 

(*) Volume Deltas are available When using a high quality compatible data vendor, that offers the bid/ask price as part of the tick stream. Volume deltas are only available on data vendors that provide tick backfill. Currently compatible data vendors are DTN IQFeed.