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Volume Delta Indicator



Volume Delta also called order flow, Volume Analysis measures what happens behind the scenes in the price action or bar type. It is the difference between buying and selling power. Volume Delta is calculated by measuring the difference between the volume traded at the offer price and the bid price. If the volume delta is greater than zero you have more buying than selling pressure. If the delta is less than zero, you have more selling than buying pressure. So, the indicator monitors buyers and sellers tick by tick and the order flow and gives you a clear view as to what direction the trend is going.

Volume Delta is a technical analysis tool that displays the amount of trading activity at different price levels. It is a way to visualize the distribution of trading volume over a given period of time, and can be used to identify key levels of support and resistance. The key advantage of using the Volume Profile is that it can help traders identify areas of buying and selling pressure.



Volume delta is the key to understand when making trade decisions based on volume and order flow. Volume delta is one of the best trading indicators you can use when trading order flow. It gives you a clear view of the buying and selling pressure in the market no matter what future your trading.

The indicator gives the trader the critical edge by allowing you to see the order flow of buyers vs. sellers by monitoring the bid volume and ask volume. This allows you to spot potential reversals in the price action.

These reversals typically happen at a High or Low. You will see how to use the indicator to manage your trading positions.

Volume Delta Indicator

In this chart, were trading Crude Oil, the trend bar turns red, and selling picks up. We get short three contracts, and our first profit target is $100. Crude Oil moves lower, and the sell side volume is getting higher, well over 100. We get out on our second contract at twenty-seven ticks. The market moves lower and goes sideways a bit, and last contract, we are out with twenty-seven ticks. So on the three contracts, we had a sixty-four tick gain for a significant profit.

The volume delta indicator rewards the volume on the bid and asks who is in control. When buyers are in control, the trend bar next to the prints on the left will be green. If it’s red, as shown in our entry, sellers are in control.