Here are the volume and delta activity of today's trading.
For a definition of delta visit here – http://www.vtrender.com/content/delta-buyer-seller-delta
We put these charts up in the premium section as they are technical in nature and only people with some basic understanding of market profile may understand them.
I'll try to explain –
The chart above is of the Nifty future with
a) extreme left showing the day's profile with the horizontal bars showing volume traded at every price point of the range between 5711-5667
b) The bluish region is called the value area or the point where 68.3 % of the day's volume got traded
c) The yellow bar within the profile has the highest volume traded at 5699. Lower down 5676 also had good volumes
d) the yellow lines running across the chart represent the day's sellers at 5708 first and 5710 later
e) the white lines represent areas where the buyers tried to buy the market up.
f) the lower pane is the delta pane and is the net difference of volumes traded at the bids and the asks.
As can be seen the delta pane sloped lower throughout the day which was an extremely good indication for us that sellers were in control through out the day.
Also for the rise up mid-day from 5680 to 5710, the delta is not positive and hence the buyer not strong. For the same reason that move was aggressively sold into.
We track delta live during market hours in the trading room. Along with the orderflow alerts, it is the single biggest factor which prevents us from choosing wrong sides in intra day trades.
Hope the above is clear. If you have questions, please feel free to ask in through email or in the comments section.
Closing with a chart of the BankNifty :
