The V.C Cumulative Delta Histogram shows the market's ongoing Buying/Selling pressure. It helps to determine whether Supply or Demand is dominating and in control.
➤If the Cumulative Delta Increases, the buyers are in control.➚
➤If the Cumulative Delta Decreases, the sellers are in control.➘
The use cases for this Indicator are vast and correlated with our other Delta Indicators. The following examples will explain how to use this Indicator. Example 1EUR / USD
In the above example, Negative Cumulative Delta Decreased & Turned into Positive Cumulative Delta. That indicates that sellers are losing control & buyers are getting power. As a confirmation on the ''Box Chart Histogram'' it is evident that Demand is also increasing. And on ''Wave Chart Index'' as a 3rd confirmation, you can see that the Delta has also increased compared to previous waves.
Example 2 Positive Delta on Cumulative Delta Histogram is decreasing & Negative Delta started increasing. On the Box Chart Histogram, Demand is decreasing & Supply is increasing. Additionally, on the Wave Chart Index, the Delta of the wave is also decreasing. (in short, besides ''Cumulative Delta Histogram," Box chart Histogram & Wave Chart Index is also adding additional confirmation)
Note: Two types of Delta sources are included in this Cumulative Delta Indicator. Type A: Simple Delta Type B: Delta % Simple Delta is the difference between Net Buying - Selling pressure. Delta % also works in the same calculation, but a Volume weighted algorithm is applied on it. You may use any of them that suits your analysis.
VC Cumulative Delta Histogram Settings & Inputs
Source: Allows you to choose the source, Between Simple Delta & Delta %. Cumulative Length: Allows you to Change the cumulative length. Positive & Negative Color: It allows you to change the colors.
Style Menue Allows you to change the style & color of the histogram.
Disclaimer Note: V.C Cumulative Delta Histogram It is purely Volume , Delta, Demand & Supply imbalance and comparative analysis-based tool. Before applying this Indicator to your study, you should know about Volume , Delta & Spread, Demand & Supply, and Aggressive & Passive behaviour of buyers/sellers. Some basic understanding of Sir Richerd Wyckoff's Theory can also be helpful.
This sounds amazing. I would love to test it. How do I obtain permission?
VcTradingMethod
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@DanielJack92, Thanks for showing interest in our tools. Please go through the PDF presentation. The link can be found in our BIO. Regards: VC Trading Method.
farooq_raza
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Incredible work! can i have access please? thanks
VcTradingMethod
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@farooq_raza, Please go through the PDF presentation or visit our YouTube Channel for more details.