Session Profile And Overlays
We performed a Background BackFill here, with 11 prior sessions. Once the data is loaded, configure the session profile: choose the overlay display to view the overlay profile on the chart.
This gives us an excellent view of the development into our current range:
Notice how well we found the most pertinent levels from our profile. Each price tier is clearly defined by the levels we identified.
Take note of the fact that we have influential levels closer together at the bottom of this development, at the end of the chart.
In addition, because we took the time to perform the Background BackFill, we can look for larger traders; which helps filter out noise and locate "industrial levels", traded places, and other turning points.
Here, we turned the filter up to 1000; and, we changed the the session profiles to show in the panel, so that we see buying and selling (with the filter on, we see only filter volume):
We found some interesting prices; and we marked them. Notice that the top seller is coincident with the 11-sesion pocket that we have marked. Also notice: the sellers and buyer that we marked below are also adding turning points in the price range at the end of the chart. It appears to us that there is increasing interest at these price tiers. Additionally we can note that we have been pushing down in price for some time now. This is a possible signal of a support zone. The chart below shows these price tiers more clearly.
Now let's turn to the accumulated deltas. We'll turn on additional display options. We have the option to view the market order delta as True Auction™ Balance. We also have the option to turn on the session Absorption Delta:
Note that currently, the True Auction Delta does not appear on BackFilled bars.
As noted above, this chart shows where the increasing interest in these price tiers shows up: we see our marked prices consolidating here.
We can notice something in the Absorption delta and the price action:
It seems to match the facilitation. And, where price tested up, the offers continued absorbing; and it is the selling that had more price action down overall.
Let's zoom in on the highlighted section and create composites:
We find an imbalance above our marked 11-session development, and stand-out bid and offer prices. Price returned here ... and it was rejected. A good trade signal.
Let's move forward to our current location:
Again we find a stand-out offer, at 29.50, and price returned there and was rejected. This is coincident with our 11-session development and the pocket immediately below. These profiles have again still left a pocket around that 29.25 level; and we see the 1K seller was in at the push down below 29.00.
We have met with another 1K buyer and seller at 28.00. Will we get pushed down again, or will we have an opportunity to re-visit the pocket at 29.25? The offers are in again in the limit delta; and, price is holding here (see the chart above showing the candles at this end of the chart: there is consolidation). And again, with the increased interest at these prices, and a long term steady trend, we should also be watchful for a rejection of a continued trend.
Let's look at the current session:
We combined our composites, and ran it over the bars where the limit delta went negative, through the following positive run. We notice one million contracts traded (in CL) over three sessions, and a 50% delta! The limit delta is also 50%! The limit delta has been on the bids in most recent history, and the trading has been mostly down. Now, the limit delta has turned to the offers, yet still the trading is mostly down! And we see a switch from bids to offers in a short price range, with another 100K volume developed there.
Another thing we see is the strong double development in our composite: we left another pocket overhead around the 29.40 level. We measured this, and also see the 28% extension on that fib was a support level, with a whipsaw down and up. Now again we traded to that level, and are consolidating directly underneath it.
In the composite on today's session, we see a couple of stand-out offers near 28.00. And again, the trading has been mostly down.
So after steady trending down, we've reached a price tier with increased interest, with all of the prices we've located. We also have the large seller at 29.00, and then again at 28.00; but price has already been rejected once at this level. We have the large buyer here too.
One more look in today's session:
And we find a 500 lot seller in from 28.75. So watch this level! This clearly seems to be a turning or initiation point: see whether 28.00 is accepted or rejected.
And the following development:
Indeed, the traders traded back up. We have positive delta, and negative limit delta. Our marked prices proved still to be the most key decision points.
Still more trading up. In fact, they came all the way back to the prior Poc on the long term overlay. A pocket was left behind; yet a pocket exists overhead as well.