We cover this topic even more in our courses. Make sure to follow the link in our bio to see which types of courses we have or email us at info@axiafutures.com
Brilliant delta discussion on ES. Exactly how some S&P traders use it. Oct 31 10:30 NT time, 3020 low was made with delta up above it's low. 2 further tests later in the day of that level, both with delta not making lows, in fact staying at or above 0. It's not always as clean as this day, but very useful skill to have in the toolbox, especially when applied to correlating markets with your instrument of choice. Thanks for your videos !
Please could you advice me ? Which Delta indicator should I use in Trading view platform ? And what inputs should i take in that indicator ? Thanks for advice :)
CORRECTION: Describing the two peaks at 7:00 in the video, you have mistakingly marked up the wrong two corresponding peaks in Cumulative Delta. The second Cumulative Delta peak you have indicated is actually corresponding to the bullish engulfing candle AFTER 7 candles of decline after the main peak. So, in fact, the Cumulative Delta is showing CONFLUENCE with regards to the higher highs you have noted on the chart, NOT a divergence.
Delta tells difference between buys and sells or if more buys or more sells positive delta or negative delta delta distinguishes willingness to accept higher or lower prices. good explanation.delta improves your execution 15min and 1 min charts are shown. cant make out which platform. upper plot shows volume lower chart shows delta plot. can i get the delta plot in tradingview/ can somebody please help
For every buy there is a sell but its about who takes the action (the at market order). If you buy at market then this creates +1 delta and if you sell at market then this creates -1 delta.
Unfortunately it is not always as clear as that in my humble opinion. If you trade the 6E quite a bit, you will see fairly regular occurrences of prices rising/going down consequently and for quite a while while delta is going the opposite way very clearly and strongly indeed. Quite obviously this is massive absorption + aggressive trades at market, but clearly this study regular momentum flow of orders at market are initiating or puking when there is liquidity in the book, and this looks like a massive delta divergence with a massive opposite price move . Liquidity seeking algos etc benefiting from those Limit opposite to the move in progress.
MrKahunadog sure but you do get a lot of those delta divergences on rather big moves. What/where would you say those inter market correlations are ? It would be very interesting to hear what everyone is seeing as correlations regarding the 6E as it is a strange animal which I love to trade
Some of the intermarket relations would be risk on / risk off. ie- Risk off markets in the drivers seat pushing Commodities related markets higher, au nz depending if cL and gc has positive or negative coorelation to the usd at the time this could be coorelated or not. Is Risk on appetite created by overall market risk on? or is it just fake news pumping china trade war at these key times for political gain and market reaction? When coorelations work awesome size up, many times they don't tighten the wallet. Imo if delta in 6e is divergent from price action, other markets could still be in the driver seat causing weakness/strength in 6e due to its relation to other currencies driving.
Yeah forget about cumulative deltas on currency futures, because all the big business in fx is done by the central banks in the spot markets, the futures are predominantly used for hedging risk so not a great reflection in the deltas of the actual intentions of bigger players
Great lessons, thank you. Am I correct that the last two examples with the Euro and Bund are more price action lessons since you did not mention delta much or have it displayed on the chart?
Great vid. But in my experience ( Also pointed out by Bren) the rise or decrease in delta can also mean absorption. Resulting in an opposite move. Lately you can see that happen in the RTY a lot. Culuminitve Delta going to opposite of the price all day!
use a heatmap to identify limit-orders and compare it with the delta. If you have aggressive buyers but sell-limit-orders pushing price down you`ll get a positive delta (aggressive orders) but a falling price due to absorption by passive orders (Limit-Order-Flow / Price-protection).
@@trading2ez absolutely. Identifying where people want the market to go and where the market IS going can help us determine trend changes and discrepancies in data
![How To Trade The Delta Reversal Strategy [FOOTPRINT CHART]](http://i.ytimg.com/vi/lYfUeEX7L3o/mqdefault.jpg)
![The Exhaustion Reversal [TRADING STRATEGY]](/img/n.gif)
Just started using Delta in my future trades and my trading has improved tremendously. Great information. I will definitely backtest with this.
Too good. No one has taught like this before. Thank you dear Friend.
We cover this topic even more in our courses. Make sure to follow the link in our bio to see which types of courses we have or email us at info@axiafutures.com
Thank you for your knowledge. I really appreciate it. Love from India🇮🇳
Brilliant delta discussion on ES. Exactly how some S&P traders use it. Oct 31 10:30 NT time, 3020 low was made with delta up above it's low. 2 further tests later in the day of that level, both with delta not making lows, in fact staying at or above 0. It's not always as clean as this day, but very useful skill to have in the toolbox, especially when applied to correlating markets with your instrument of choice. Thanks for your videos !
Please could you advice me ? Which Delta indicator should I use in Trading view platform ? And what inputs should i take in that indicator ? Thanks for advice :)
Divergence on delta from the price action is key. Tho I would look for key levels first before anything else.
Hi, Does delta work on daily timeframe for swing trading purposes? How different it is from order flow indicator? Thanks
CORRECTION: Describing the two peaks at 7:00 in the video, you have mistakingly marked up the wrong two corresponding peaks in Cumulative Delta. The second Cumulative Delta peak you have indicated is actually corresponding to the bullish engulfing candle AFTER 7 candles of decline after the main peak. So, in fact, the Cumulative Delta is showing CONFLUENCE with regards to the higher highs you have noted on the chart, NOT a divergence.
this method seems to work really well with other indicators, kudos to the Erik ten Hag of trading 👍🏻
Delta tells difference between buys and sells or if more buys or more sells positive delta or negative delta
delta distinguishes willingness to accept higher or lower prices.
good explanation.delta improves your execution
15min and 1 min charts are shown. cant make out which platform.
upper plot shows volume
lower chart shows delta plot.
can i get the delta plot in tradingview/
can somebody please help
Great stuff, cheers 👍
may i know how is this calculated? i know CD=buy order-sellorder, but how do i define buy sell order
For every buy there is a sell but its about who takes the action (the at market order). If you buy at market then this creates +1 delta and if you sell at market then this creates -1 delta.
Unfortunately it is not always as clear as that in my humble opinion. If you trade the 6E quite a bit, you will see fairly regular occurrences of prices rising/going down consequently and for quite a while while delta is going the opposite way very clearly and strongly indeed. Quite obviously this is massive absorption + aggressive trades at market, but clearly this study regular momentum flow of orders at market are initiating or puking when there is liquidity in the book, and this looks like a massive delta divergence with a massive opposite price move . Liquidity seeking algos etc benefiting from those Limit opposite to the move in progress.
Re- delta vs 6E. The 6E moves due to a number of reasons, much more intermarket sensitive.
MrKahunadog sure but you do get a lot of those delta divergences on rather big moves. What/where would you say those inter market correlations are ? It would be very interesting to hear what everyone is seeing as correlations regarding the 6E as it is a strange animal which I love to trade
Some of the intermarket relations would be risk on / risk off. ie- Risk off markets in the drivers seat pushing Commodities related markets higher, au nz depending if cL and gc has positive or negative coorelation to the usd at the time this could be coorelated or not. Is Risk on appetite created by overall market risk on? or is it just fake news pumping china trade war at these key times for political gain and market reaction? When coorelations work awesome size up, many times they don't tighten the wallet. Imo if delta in 6e is divergent from price action, other markets could still be in the driver seat causing weakness/strength in 6e due to its relation to other currencies driving.
Yeah forget about cumulative deltas on currency futures, because all the big business in fx is done by the central banks in the spot markets, the futures are predominantly used for hedging risk so not a great reflection in the deltas of the actual intentions of bigger players
Great lessons, thank you. Am I correct that the last two examples with the Euro and Bund are more price action lessons since you did not mention delta much or have it displayed on the chart?
Great vid. But in my experience ( Also pointed out by Bren) the rise or decrease in delta can also mean absorption. Resulting in an opposite move. Lately you can see that happen in the RTY a lot. Culuminitve Delta going to opposite of the price all day!
If a reversal doesn't happen by the end of the session that's usually my clue to move to a different trade.
use a heatmap to identify limit-orders and compare it with the delta. If you have aggressive buyers but sell-limit-orders pushing price down you`ll get a positive delta (aggressive orders) but a falling price due to absorption by passive orders (Limit-Order-Flow / Price-protection).
@@trading2ez absolutely. Identifying where people want the market to go and where the market IS going can help us determine trend changes and discrepancies in data
@@trading2ez what software are you using to look at a heatmap
@@trading2ezwow. Nicely explained. Is there is any video to understand this better.
Does opening a short at market “buying a short” get counted as sell volume for purpose of calculating Delta?
Hello. Yes. Every time you are a price taker, it gets involved into Delta calculation.
Hi
Where can I get this indicator?
Hi Vinay, Market Delta or sometimes Volume Delta is part of most charting softwares as an individual package.
Thank you
thx you, great to know that
There is no divergence here.
HODL HOSKY
Waste of time 🤦🏻♂️