Wednesday, 20 January 2010

Differences to MarketDelta Volume Indicators in Other Platforms

I just want to mention again that neither the TradeStation or MultiCharts Volume Breakdown or Cumulative Volume Delta use actual historical volume. They use upticks and down ticks. This is not quite the same as using the actual number of contracts as MarketDelta does. The reason is that neither TS or MC can extract volume at bid and volume at ask, historically.

For this reason the charts will not all be the same for these two indicators.

Is one better than the other?  Is one more "correct" than the other? If you are a purist and volume is volume then MarketDelta is "exact".  However, I  consistently used the MultiCharts version for a long time and it worked for me. Often both types show the same thing. Its only when the upticks and downticks don't approximate volume that there is a difference and often the upticks and downticks can give a better result. I think it all balances out if you are consistent.

To see the difference, compare your TS or MC charts with the MD charts that are posted.

As far as other platforms are concerned, I don't have anything. If any readers do and wish to share, I'll happily post them.

A link to the TS and MC indicators have been posted in the KEY POSTS area under Chart Settings & Chart Indicators. They are free and provided for your educational use as is the rest of the blog.

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