Volume Delta and Cumulative Delta (Cumulative Volume Delta) are common indicators used in various financial markets, including stocks, futures, commodities, and forex. They are commonly employed in order flow analysis to understand the dynamics between buying and selling activity at different price levels or over specific time periods. Traders often utilize Volume Delta and Cumulative Delta to gain insights into market sentiment, identify potential trend reversals, and make more informed trading decisions.

Whether you are trading equities, commodities like gold or oil, futures contracts, or currencies in the foreign exchange market, both can provide valuable information about the balance of buying and selling pressure.

What is Volume Delta?

Volume Delta is the net volume of market orders executed at the ask (buying) and bid (selling) prices. It indicates whether there is more buying or selling activity at a given moment.

• Positive Delta: If the Volume Delta is positive, it suggests that more market orders have been executed at the ask price, indicating aggressive buying behavior.
• Negative Delta: Conversely, a negative Volume Delta implies that more market orders have been executed at the bid price, indicating aggressive selling.

How about Cumulative Delta?

Cumulative Delta (is the sum of Volume Delta values over a series of periods, creating a cumulative or running total. It reflects the overall buying or selling pressure in the market.

Cumulative Delta is employed for longer-term analysis. Traders use it to assess the overall trend strength and sustainability. A rising Cumulative Delta over an extended period may indicate a persistent bullish trend, while a falling Cumulative Delta may suggest a prolonged bearish trend. It helps traders make decisions based on the cumulative impact of buying and selling pressure.

Which trading styles are suitable for Volume Delta and Cumulative Delta?

Volume Delta and Cumulative Delta are often used in shorter-term trading styles such as scalping and day trading. Scalpers benefit from the real-time insights provided by Volume Delta for quick decision-making, while Cumulative Delta can offer a slightly longer-term perspective on trend dynamics. Day traders use both tools to understand intraday order flow and assess overall trend strength within a single trading day.

FREE Cumulative Delta on NinjaTrader 8

The NinjaTrader platform features essential volume delta indicators, namely Delta Volume and Cumulative Delta, both readily available in the indicators list. These tools are accessible with a NinjaTrader lifetime license, offering solid performance for standard-level indicator requirements.

For an enhanced experience and a more advanced edge in trading with Volume Delta and Cumulative Delta, traders may explore premium indicators from third-party providers. A reputable source for such premium indicators is ninZa.co, offering not only superior tools but also full-time support to optimize your trading strategies.

PREMIUM Volume Delta and Cumulative Delta

1. PRIME* Volume Delta

This indicator elegantly displays the volume delta for each bar, representing the difference between the total buy volume and sell volume within that bar. The Volume Delta indicator from ninZa.co offers the flexibility to filter volumes based on specified ranges, allowing you to observe the actions of distinct trader groups. Here are examples of volume filters you can apply:

• Volumes from 1 to 5: Retail traders
• Volumes from 6 to 19: Big professional traders
• Volumes from 20 to 999999: Banks & hedge funds

This indicator empowers you to set 4 thresholds for strong and moderate volume delta. For instance:

• Strong positive delta: 150
• Moderate positive delta: 50
• Moderate negative delta: -50
• Strong negative delta: -150

Upon crossing these thresholds, the indicator will mark significant shifts in volume delta and trigger alerts, ensuring you stay informed about crucial developments in the market.

Check out the review video of ninZa.co Volume Delta indicator below:

2. PRIME* Cumulative Delta

ninZa.co's version of Cumulative Delta for NinjaTrader 8 is uniquely remarkable as it determines market trends through a sophisticated analysis that combines cumulative delta, the moving median of cumulative delta, and price action. This version stands out as a one-of-a-kind delta interpreter within the trading world.

The PRIME* Cumulative Delta also integrates a volume filter function, similar to the Volume Delta, with additional visual enhancements. This includes a background highlight of uptrend and downtrend phases, serving as a filter to validate or negate your trading signals. Furthermore, candles are artistically painted in colors of your choosing, emphasizing periods when the market experiences robust uptrends or downtrends. The combination of these features makes PRIME* Cumulative Delta a powerful and visually intuitive tool for traders.