Summarizing how I think SB thinks, from the first couple lengthy posts that he makes, from pgs ~3-7.
The market prints a sort of signature that is visible in the right light, and this provides trade opportunity. SB sees these in deltas, and calls himself a delta trader, so we begin with what are called Delta concepts. Delta is later defined as:
“The mathematical differential between one or more data points that are either Internal (inside the same Bar); Contiguous (inside adjoining Bars); or Non-Contiguous (across multiple non-adjoining Bars).”
What’s important to take away is that he’s using delta in a pretty standard way. Back in chemistry class from high school, delta was simply the difference between two things. Remember that.
There are three delta trade concepts: Omega, TCD Long(and TCD Short), and Non-Continuous Delta.
Omega is the delta between two points, while TCDs are continuous between two adjoining bars of delta between two or more delta points. Lastly Non-continuous delta is simply between two non-adjoining bars of data.
Breaking down Omega: This is from the concept of market Magnitude. The closest standard thing to representing magnitude is ATR (average true range). The markets Omega refers to it’s magnitude.
TCD stands for Transequential contiguous Delta. There are two basic forms of TCD.
TCD Short: PH-L
SB brings these concepts together wonderfully to bolster the idea of a moving living market.
Omega is king. It consists of the delta between two points within the same bar, bout accounts for all of the price action within the bar. The “energy” of the market is thought to be proportional to the product of the omega and the two trajectories(the TCDs), similar to the way e=mc2 I see this as a way of saying Omega is the net effect or force of the market, and inside of the Omega are the two TCDs interacting with each other: Long/short, bull/bear, positive/negative energy, with one force (one TCD) being dominant and the other being subordinate, creating the effect we see in the Omega.
“Thus, all Price action flows from Omega -but- is fully contained and fully defined within the TCDs.”
So the real representation of the market is not just in the Omega, but in the magnitude of the underlying TCDs as well.