Trading Fundamentals – High Quality Datafeed

Experienced traders and investors know that data reliability can be one of the biggest problems you have. We’ve had data-feeds from some brokers give marginal volume data, even though the price data-feed was adequate. When you’re observing a Delta Divergence or tracking the Cumulative Delta, the quality of your data-feed is paramount.

Let’s look at some basics.

Originally, market technicians noticed that once prices fell to a certain area on the chart, they seemed to bounce back. That area was then assumed to be an area “buyers” would support the price. Unfortunately, many have not had a way to dig into the concepts of real “support” and “resistance,” a la Delta Volume Analysis, and repeatedly trade these levels like a boxer closing his eyes as he leaves the corner: He wants to fight but he doesn’t want to see the haymaker coming. You need to be rigorous in terms of what support and resistance means or you’re simply judging them by what they “look like” as opposed to what their probability rate is.

Don’t even get me started on using math formulas for determining levels…

So be sure not to skimp on your data-feed service! We’re planning on having a couple of vendors at some point come in and discuss the details of how they parse their data and package it. For the curious, The ONLY data feeds that we feel offer proper clean bid/ask data at this time are DTN.IQ, Zenfire, and CQG.
Cheers,

Fulcrum Focus