What do the colors of the cumulative delta indicator mean? Most bars appear green and red, but some bars have a 3rd color, than can be customized in the indicator settings. Also how does the paramater “Strong Up Down” work?
Please point me to an explanation of that indicator, thanks!
I’m looking for an answer to this same question. I’m trying to understand the “Strong Up Down” option of the Cumulative Delta indicator. How do I interpret those 3rd colored bars (grey by default) when this option is enabled?
A bigger issue for any delta data in tradovate, is the lack of historical high/low delta data. If you close the app or need to refresh charts (F5) you lose all high low delta data. This is an important issue which most other platforms have addressed.
In your example, what do you have the “minimum number of bars to load”? Is that parameter set to cover the window of history you’re looking to load when the chart reloads?
This problem can be seen on a few custom indicators that utilize delta. Recently latter day trader made a nice add-on to the volume delta grid which shows the min/max delta for the chosen period. If you open a fresh chart and plot it, you will not see the min/max for the historical periods. This is fine if watching in real time, but I’ve had issues with charts refreshing on their own or needing to restart the desktop version and losing all the min/max delta value.
Responding to Original Poster’s and Sully’s question.
The definitive answer to this question is to look at the code of the indicator: custom-indicators/cumulativeDelta.js at master · tradovate/custom-indicators · GitHub
If “Strong Up Down” is unchecked, the color of the cumulative delta bar is based upon opening and closing price of the current bar. Red if close < open, and Green if close > open. Grey, if close = open. That is, if price’s candle is a perfect doji bar, you’ll see a Grey colored candle for Cumulative Delta.
If “Strong Up Down” is checked, the color of the cumulative delta bar is based upon the current bar’s closing price and the previous bar’s high and low price. Red if close < previous bar’s low, Green if close > previous bar’s high, Grey, if close <= previous high and close >= previous low. That is, current closing price is between the previous bar’s high and low price (inclusive).
It’s very confusing to me. I had assumed the color of the cumulative delta bar was based on the actual delta value. It is possible that the cumulative delta bar will be colored green (because price went up), but the actual delta value is negative.
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Thank you, @JackieW. I’m sorry that I didn’t see your response sooner. I’m new to Tradovate, so there has been a lot for me to learn as I get up to speed.
[…] look at the code of the indicator […]
Awesome! I did not know about the Tradovate repo. That will come in handy.
It’s very confusing to me. I had assumed the color of the cumulative delta bar was based on the actual delta value. It is possible that the cumulative delta bar will be colored green (because price went up), but the actual delta value is negative.
You’re a little bit ahead of me, so I’ll need to catch up.
Thank you, again, for pointing me in the right direction and sharing your insight as a jumping-off point for me. I’ll update this thread once I get it sorted out.
I’ve read over cumulativeDelta.js and can see this logic…
This makes sense. The logic is identifying gaps, but I don’t see the code that allows you to determine…
I assume that this module returns the result object to another module where that happens. I don’t know anything, yet, about the framework that runs custom indicators, so I still have a way to go before I can catch up with you. I don’t mind. It will be fun!
Hi Jackie, just wanted to say thanks for this – really helpful!
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