Wednesday, June 10, 2009

Tracking Volume at Price and Selling Sentiment

In this Market Delta chart (bottom chart), we look at each 60-minute period as a separate volume histogram. That helps us see how we are accepting vs. rejecting value at various price points. Note how we expanded volume at the bid in the ES contract (bottom histogram), rejecting value at the volume bulge around 939 mentioned in the recent tweet.

2:05 PM CT - I added the top chart to show how we're trying to hold the 6/8 lows, setting up a potential trading range for the week to date.


Lover Dad said...

Dr. Brett, based on the current correlations between treasury yields and the S&P, do you recommend more real time tracking of yields right now vs. volume footprint or other tools?

TommyTek said...

Thanks for the info... BTW, which software or subscription service gives those types of charts you are following in this post?? (particularly the 2nd one...). Thanks.

TommyTek said...

My bad, I didn't realize Market Delta was the answer and there was a site link sitting right there.. Thank you!!

Brett Steenbarger, Ph.D. said...

Hi Lover Dad,

I don't see these as mutually exclusive. I always track intraday sentiment, but intermarket themes shift over time.