Volume Delta (Expo)

2023년 2월 9일

█ Overview
Volume Delta (Expo) is a trading tool that measures the difference between buying and selling volume in a given market. It is a powerful tool for analyzing volume clusters and price action, as it can help traders identify the direction and strength of the trend as well as potential volume-weighted support and resistance areas.


█ How is the Volume Delta calculated?
Volume Delta is calculated by subtracting the number of contracts traded on the bid from the number of contracts traded on the ask. A positive Volume Delta indicates that more contracts are being traded on the ask than on the bid, which suggests buying pressure. A negative Volume Delta indicates that more contracts are being traded on the bid than on the ask, which suggests selling pressure.

• Note, our Volume Delta (Expo) uses intrabar analysis in combination with volume clusters which is a great approximation to calculating volume delta on TradingView. The tool is equipped with a unique volume-weighted cluster function to calculate the delta trend over time as well as a dynamic trend strength calculation.
  

█ How to Use Volume Delta to Analyze Volume Clusters
Volume clusters are areas of high volume that indicate a potential change in price direction. Once the clusters have been identified, traders can then use Volume Delta to measure the difference between buying and selling volume in the clusters.

If the buying volume is greater than the selling volume, it indicates that the price is likely to move higher. Conversely, if the selling volume is greater than the buying volume, it indicates that the price is likely to move lower.

In addition to measuring the difference between buying and selling volume, traders can also use Volume Delta to analyze price action. By looking at the volume clusters and the corresponding price action, traders can identify potential support and resistance levels.


█ How to use
The volume delta provides insight into market sentiment, as a rise in buying volume on a positive close indicates that bullish sentiment is strengthening, while a rise in selling volume on a negative close indicates that bearish sentiment is increasing. In addition, use volume delta to identify the direction and strength of the trend.

• It's common among volume traders to use volume delta to confirm trends, identify reversals, divergences, and volume-weighted support and resistance areas
  

Volume - divergences
If the volume delta is positive but the price trend is still bearish, it could be an indication that the current trend is weakening and a reversal may be imminent. Similarly, if the volume delta is negative but the price trend is still bullish, it could be an indication that the current trend is weakening and a reversal may be imminent.


█ Indicator Features
In addition to the main Volume Delta feature, the indicator has the following features:

• Adaptive or Stability Volume Strength: Choose between adaptive or stability volume strength.
  
• Exhausted Volume bars: Show Exhausted Volume Bars on the chart.
  
• Divergences: Enable Regular and Hidden Volume Divergences
  

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Disclaimer

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