CVD chart questions
CVD chart questions
1. what is the logic when the orders traded are "Between ask/bid", as in the T&S window shows? Does it count into the CVD chart bars? If yes, what is the finer logic, does it count according to whether the traded price is closer to bid or closer to ask?
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Re: CVD chart questions
Hello gztanwei,
Cumulative Delta chart type takes into account "Between ask/bid". There are two Cumulative Delta types: Up Tick vs Down Tick and Ask Traded vs Bid Traded.
In Up Tick vs Down Tick asks and bids are not taken into account.
In Ask Traded vs Bid Traded if Ask = Bid = Trade or Trade is between Ask and Bid, then the algorithm is switched to “Up Volume vs Down Volume” and the delta is calculated based on the previous tick. Please refer to Cumulative Delta Wiki for more details.
As for the understanding of the "Between ask/bid" - you can find the information about the Tape reading over the Internet.
Cumulative Delta chart type takes into account "Between ask/bid". There are two Cumulative Delta types: Up Tick vs Down Tick and Ask Traded vs Bid Traded.
In Up Tick vs Down Tick asks and bids are not taken into account.
In Ask Traded vs Bid Traded if Ask = Bid = Trade or Trade is between Ask and Bid, then the algorithm is switched to “Up Volume vs Down Volume” and the delta is calculated based on the previous tick. Please refer to Cumulative Delta Wiki for more details.
As for the understanding of the "Between ask/bid" - you can find the information about the Tape reading over the Internet.