Volume delta
Details 100% the distribution and imbalance of trades within volume candles👇
Labeling on the chart
Volumes show the number of executed trades, but do not indicate which trades were more numerous!
Many mistakenly believe that if a volume candle is red, then the bears "won" in it...
In fact, a volume candle always repeats the color of the regular candle and often misleads!
Delta of volumes is conveniently located under the regular vertical volumes and accurately analyzes the distribution of trades within candles.
Delta shows which side had the actual advantage and how strong it was:
Color shows who won, green - buyers, red - sellers
Number shows the strength of the advantage (the difference between buys and sells) - from 1 to 10
Filled numbers highlight the maximum advantage - 7 points and above
Application in trading
Detailing volume candles improves understanding of the current trend and helps find strong entry and exit points in advance, when the advantage is only beginning to form:
Green - buyers dominate (confirms an uptrend and buy trades)
Red - sellers dominate (confirms a downtrend and sell trades)
Extreme value - a signal that one side has achieved a "crushing" victory and the price may continue to move in the winners' direction for several more candles - trade in that direction
In the example we see green filled delta volume circles that indicate a strong advantage of bulls,!
As a rule, after a strong advantage of bulls,, the price continues to move upwards for some time.
In the example we see red filled delta volume circles that indicate a strong advantage of bears,!
As a rule, after a strong advantage of bears,, the price continues to move downwards for some time.
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