Charting
Choose from a selection of chart display options, including text
Divergence
Identify divergence between price movement and accumulated delta
Imbalance
Visualise imbalances aggressive buyers & sellers
The Basics
The Swing Delta study tracks the difference between Ask and Bid traded volume (Delta) per minor price rotation, it can be used to monitor the relative strength of aggressive (market) buyers and sellers. A cumulative sum of Delta is maintatined throughout each price rotation.
In the context of this study, a minor price rotation is defined as sequence of chart bars where all of the bars are positive (close > open) or all of the bars are negative (close < open). A new rotation begins once a chart bar closes in opposition to the current swing. Neutral bars (open = close) are considered to have the same direction as the established swing.
monitor the relative strength of aggressive (market) buyers and sellers…
Possible Uses
A simple use for the study could be to monitor for divergence between swing delta and price. If price is moves in a direction but is not supported by sustained levels of buying (or selling), then this can indicate that the current move may be approaching its completion.
In addtion to the broader divergence between price movement and delta, divergence can also be found in individual price rotations, for example an positive price movement accompanied a negative accumulated swing delta.
monitor for divergence between swing delta and price…
A little bit more about the study
The Swing Delta study can be configured to plot a chart in either a box format, showing only the accumulated delta for the swing, or in a histogram format, showing the accumulated delta at chart bar.
As an alternative the study can be setup to display the accumulated delta (per swing or per bar) in text format, above or below the main chart price bars.
Maximum and minimum accumulated delta values can also displayed, either graphically or as text. This display feature can be useful as it highlights when delta a reversal has occurred within an individual swing.
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