The new functionality allows for the plotting of the developing VPOC.  The developing VPOC plots a line and shows the history and progression of how the VPOC has adjusted based on price and volume activity.  Think of it as the history of where the high volume price has been over time.

To add this to a chart first add a Profile indicator to a chart. Once added, make sure the top most setting in its preferences is set to “Price and Volume”.  Then just check off the “Dev VPOC” box to add it to the chart.

This will plot based upon what is set in the Time Per Profile section in the preferences. In the screenshot below it was set to 2 days, meaning the developing VPOC is plotted for the past 2 days.

We are proud to be able to offer this service to MarketDelta clients and it only underscores our commitment to you and your success as a trader. While most companies are finding ways to scale back on support we are committed to finding more opportunities for you to stay in touch with us and contact us when required.

All this comes on top of our live chat support before and during U.S. market hours. This allows us to provide real time support to the bulk of our customers and offer same day resolution to issues via email.

Another reason for expanding our support has to do with MarketDelta Trader, our new trading software. In the next few months there will be some big enhancements that will integrate it with MarketDelta Charts, allowing for a fully integrated trading solution.

As a trader myself for many years, I know it is important to be able to get help when you need it most and you can rest assured we are standing by to help make you as successful as we possibly can through software AND support services.

A comprehensive list of what’s new in this release can be found in our Support Portal under MarketDelta Charts Announcements. Here is a short list of a few that everyone should know about as it might effect how you do certain functions within the software.

• New Indicator: Multiple Price Highlighter – this is a new indicator that leverages the Footprint information. Build within this indicator is the new Keppler Volume Tracker. More information on this indicator can be found here.
  
• Range, Change, Renko Periodicity Expressed in Tick Increment Units - A very important change has occurred in 10.5 if you use any of these periodicities. We have standardized values entered to be based on the number of ticks. So if you enter 6 tick range for the ES, then change the chart to YM, it will still show a 6 tick range chart.  More information on this indicator is in the release notes.
  
• Profile Indicator Enhancements - Several enhancements were make to the Profile Indicator.  Peak and Valley lines can now be customized with color, width, and style. More information on this indicator is in the release notes.
• Multi-Link Chart Scrolling and Time Synchronization - The Multi-Linked charts can now contain the same or different symbols and the charts can be of any mix of periodicities.  More information on this indicator is in the release notes.
• Developing VPOC Option for Profile Indicator - A check box has been added to the Profile Indicator titled “Developing VPOC”.  When enabled, the developing VPOC is plotted allowing the user to see how the VPOC changed from bar to bar as the profile formed.  This option is available to all of the many flexible durations of the Profile Indicator including 30-minute profiles, daily profiles, or long-term composite profiles.
  

When Fresh Start is checked off the interval settings you have selected begin fresh for the day and do not carry over from the prior day. For instance, if the chart is set to 1440 tick, when the new day begins the chart begins building a new 1440 tick bar. If Fresh Start is not checked, the last bar from the prior day will keep building. For markets that gap this creates one large bar and as seen below, can really skew the signals produced by a custom indicator or signal marker.

Bottom line, when fresh start was checked more signals where generated. For this specific chart, it was important because it references the low and high of the day.

More information about periodicities and fresh start are available here.

Most Visited Blog Post of 2011
Step through of a trade setup – we just posted this a few weeks ago and already it is the most visited post of the year! We will post more timely examples like this next year since everyone seems to like them.

Most Commented Blog Post of 2011
Chart of the Week – Auction Market Theory Order Flow – Thanks for all the comments on this one. Lots of people really found this chart to be an eye opener for them and served as way to learn more about auction market theory. If you haven’t read this post, check it out for sure. Great educational tool.

Winner for 2010
Save Money on Data Costs – What’s not to like about this one. With 2012 right around the corner, we will soon be adding support for a few more brokerage feeds. They are OEC and CQG. Both will be free brokerage based data feeds and fall under the same category as IB, TransAct/Infinity, Zenfire, and Rithmic. Stay tuned!

The Forex market is many times larger than the equities and futures markets – combined. Spot Forex remains one of the largest markets in the world and is particularly popular with short-term traders and scalpers. However, as this is a de-centralized market with no true “exchange”, there is no true and accurate volume information available. So, how can you use Delta Divergence on a market like Forex, if you don’t know Ask and Bid volume information?

We provide the features to set our order flow studies based on “up tick” and “down tick”  so you can compare the price ticks in a positive direction with those in a negative direction. This is a form of order flow analysis, but does not use the actual contract size of those individual trades and ticks.

What are the results? Here is an example from this week on the EUR/USD spot forex instrument:

Click for a larger view.

Why? Well either price will follow cumulative delta and the aggressive order flow will prove to have been correct OR the shorts (as was the case when we tweeted) are getting sucked in at the low of the rotation and will fuel an often quick move in the opposite direction.

Now for a very important observation that is extremely valuable when you see it. Today’s price action up to the time we tweeted was tight and range bound. Just a very well defined 8 point rotation. This lends to more rotation inside the well defined range UNTIL proven wrong. The delta was deteriorating but at a very well defined support. So, the trade opportunity is actually a long at this support level with a tight stop. The tight stop is suggested because if price does start to breakout it should be accompanied by some follow through and range extension. See the Footprint chart of this example below.

If this deteriorating cumulative delta pattern were to occur on a day that was not tightly range bound, then a breakout would be more likely versus a snap back from the well defined support level.

It is important to understand that Market Profile is nothing more than a way of viewing financial auctions. In this regard, there is no difference between futures, options, stocks, bonds, commodities or other financial instruments: they all follow the same basic auction process. Thus, Market Profile is perfect for understanding where the value areas are in any particular market, whether it is the ES future or the stock of Apple. Here are a couple examples.

First, when setting up a Market Profile chart, it is a good idea to change the price range of each letter. A stock trades in pennies and may sway by many dollars a day. Depending on the stock, 1 dollar may represent a small part of its range, while for others it is a large part of its range. You will probably want to find a letter size between 10 cents and 1 dollar, which you can do in the Custom Letter Range box:

Enter 0.1 or 1 or whatever you feel is appropriate.

Here are some examples of AAPL stock using a Market Profile set to 10-cent letter ranges.

Here is a classic example of Market Profile value areas in action. The market broke above value, and then rejected efforts to fall back inside that value. This confirmed that new value was successfully established.

Here is another one:

The market falls and trades below value for an entire day. On the following day, the market attempts to push back up in to this prior value, but the value area low stops it cold.

Market Profile charting is an extraordinarily powerful tool, and we recommend that anyone serious about it give those charts a try. You can learn a lot about Market Profile concepts, theories and strategies in the books by James Dalton, Markets in Profile and Mind Over Markets.

The conditions used to “paint” the bar or background are defined in a scan, signal, or custom indicator. With all the powerful volume and price related studies in MarketDelta, the possibilities are almost limitless in the types of things you can “paint” upon.

In the example below I have taken the volume breakdown indicator and created a signal to plot the background based on whether the cumulative delta is positive or negative for the current session.

In terms of applying this information, you could use the cumulative delta as a confirmation for trade direction. If green, buy pullbacks, if red, sell rallies. A more aggressive way to apply the indicator would be to use a Footprint chart with the shaded paint bar background. A Footprint chart inherently provides more data than just a bar chart and will give a better idea of order flow. This means you can jump on breakouts if the order flow is present instead of waiting for pullbacks.

Here is how to do it, or just download the chart definition here.

Create the signal first. The signal is just VB>0.

Next, add the Paint Bars indicator, choose Signal, and select the signal you just created.

Choose to Paint Background.

Click “View” to update the settings or just view how the signal is setup.

Double click Volume Breakdown to see the settings for the “VB” token.

Here is the result once added to the chart.


 

For those who do not know much about iceberg orders, the simplest way to describe them is to simply think of a real iceberg. Only a portion of the quantity is shown in the depth of market. As the order is filled, more quantity is automatically refreshed in the order book. A simple example would be an order for 500 contracts. The trader uses an iceberg order to only show a set quantity, say 50. As the 50 are filled, another 50 are automatically, and almost instantaneously, sent into the market at the same price. This will continue to happen until the entire iceberg is filled.

The purpose for these orders it to hide the actual intent to buy or sell large quantities. This helps institutions and large traders to not be “front-run” by others who look to jump in front of their larger orders. One benefit of now being able to better track this activity, especially at key support and resistance levels, is have absolute knowledge of how much volume is trading without having to rely on the order book. Obviously the order book will not show this data without the Footprint.

A simple example of an iceberg is shown in this video. Better examples present themselves every day, but we happened to be recording the market when this occurred.

Iceberg Order from MarketDelta on Vimeo.

For more information on MarketDelta Trader or to demo the software, visit http://www.marketdelta.com/products/trader/brokers.