Stage 3: Cumulative Delta & Footprint Flashcards
1
Q
In a glimpse, what does the Cumulative Delta tell us?
A
It tells us of which market orders are winning the battle.
2
Q
What is an Imbalance ratio of the footprint?
A
It’s when the footprint depicts values that show that one market participant is winning more than the other. Example: An imbalance ratio of 3 means that the amount of say, buyers has exceeded that of sellers by 3 times.
3
Q
What is a Cumulative Delta?
A
It’s the difference between Demand on the Bought & the demand on the sold.
Example: Demand buyers on DOM = 2800, demand sellers = 800. (Delta 2800 - 800) = 2000. However, the chart isn’t moving hence = Trapped buyers! (Divergence)
4
Q
What does Delta help us with mostly?
A
Spotting Absorptions.
