New Order Flow Software Available
Significantly Updated Cumulative Delta Indicator
Cumulative Delta Indicator with Reconstructed Tape
There are major changes to the order flow software cumulative delta indicator which is exclusive only to ZoneTraderPro. A cumulative delta indicator is important because you can see when there are divergences and when traders are or are not participating in a market move.
ZoneTraderPro takes this to the next level. NinjaTrader has a cumulative delta indicator but it does not display properly if you want to see filtered results. The reason is this. The numbers you see in the NinjaTrader Time and Sales and their cumulative delta indicator is based on the size of the fill, and not the size of the order. This is a huge difference if you want to track what the smart money is doing.
A reconstructed tape changes all of this. With a reconstructed tape you are now tracking the size of the order and not the size of the fill. On the chart on the left you can see why this matters. The new indicator has a high and low filter value. So the retail traders are signified by the red line and the smart money the green line. The buyers were the retail public into the short reversal trade, and the smart money were the sellers.
The other thing that you cannot do with the NinjaTrader indicator is set a high and low value to filter. The picture below is the exact same setup that you see above. The ZTP indicator is set to 25-149 and the NinjaTrader indicator is set to a minimum 25 as the filter.
Notice how ZoneTraderPro is accurately tracking the large traders and the NinjaTrader indicator is not showing anything.
This is because there were no fills that were at least 25 or more. ZoneTraderPro is tracking the order size. Its also interesting to see the NinjaTrader indicator reporting buys as price started falling.
There is no reason to believe that what is being shown as buying as inaccurate. But what was not captured by the indicator was the selling that ZoneTraderPro was also picking up.
Significantly Updated Delta Strength Indicator
Reconstructed Tape Delta Strength Indicator
Just like the Cumulative Delta indicator, the ZTP Order Flow Software Delta Strength indicator has also been updated with both a reconstructed tape and a filter.
This has become the strongest indicator in the order flow software suite.
The Delta Strength indicator is not the delta of a bar. It is a different proprietary value. And now it can be filtered to just show the large traders. Nowhere else will you be able to find the indicator.
The picture on the left represents the filter value set to 100.
Filter Set Without Reconstruction
This is the result we get if we did not have a reconstructed tape and were trying to filter for orders of 100 or more.
No Filter Delta Strength
This is what the Delta Strength indicator would have looked like before the update. There is no filter set and the tape is not being reconstructed.
Filtered Selloff
Putting Delta Strength on a Point and Figure Chart
Sometimes You Just Get Lucky
I strongly suggest that if you have a piece of software that you experiment with the settings and just do not go with he defaults. I wanted to see what the delta strength looked like on a Renko chart. The only problem is that the tick replay function is not available on the Renko chart. So I tried my idea on the Point and Figure chart and saw something completely unexpected.
Most Valuable Chart I Have
I instantly found what I considered my most valuable tool and chart for trading. By placing the Delta Strength on a P&F chart, and putting a filter on the value, showed something completely unexpected. You could see the Delta Strength showing divergences and providing great entries.
It only makes sense. Do you want to follow traders that trade 2 contracts, or follow traders that trade 200 contacts?
Combine Order Flow Patterns and Large Trade Information
Order Flow Software Patterns
Here is a series of trades that are worth over 30 points in a 45 minute period. Marked are the locations were the Point and figure aligns with the order flow. This gives us real information about which order flow should be looked at as possible trades.
The Pricicng Patterns
And because the patterns are also important here is that chart. The only trade that would have given pause would have been the long trade at 1214 hours because this represented a high risk because the rotation was 9.5 points and in a strong bear trend.
The New Order Flow Software Rotations Indicator
There is the ability to see the rotations in the ZoneTraderPro Indicator, but it was difficult to see. Now it is much easier to see the rotations and when impulses occur.