How To Trade Using Cumulative Delta – Simple And Easy
Transcript
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What’s up Traders so I was asked on our live stream a couple times to explain cumulative Delta um so I’m making this video if you’re not on our live stream we stream every day live 1:30 to the end of the day feel free to join us um let me get right into this basically I play cumulative Delta by looking for divergences and that’s really it um basically what’s going on in the market relative to uh buys and sells and it just
Gives you a look at what’s going on under the hood um and not by the candlesticks so things that I look at um I typically use this on the five it just works better that way um I’m going to show you a couple of examples you kind of get the gist of it it doesn’t happen every single day and I don’t look for a cumulative Delta trade every single day I kind of have it up and if it happens it happens
It definitely happens more in volatile um environments so I’m going to show you a couple short uh examples and a couple long this is Lonesome cumulative Delta it is in um this is on trade of8 I found one on trade of eight because I feel like most people that are subscribed to this channel are using trade of8 but obviously you can get it on trading view I’m going to look for a good script that shows divergences on cumulative Delta on trading
View I haven’t found one on trade of8 but I will post that in our Discord chat when I find it so really you’re looking for divergences so you can see kind of right here how you know we pop and you could see uh of Delta Pops to right around here well the next time the market pops not too long after right here we’re not even close to the same High I mean there’s a huge gap here which leads me to believe
That we’ve moved up more than we should have and basically the price action should Retreat and sure enough that’s exactly what happens um you know you’re looking for gaps like this where you get the the price movement without um the actual underlying buying and not too long after that the next day you kind of get um same action I mean you’re all the way up here when the price is up here and then you can just see it like you make
New Highs but uh cumulative Delta is nowhere near making new highs and sure enough right after that you get a a massive selloff um and that’s what I’m looking for and like I said it doesn’t happen um every single day obviously I picked a couple of examples recently that occurred and um but you know if you get one of these plays it can really make a whole account um especially if you have takeprofit Trader I mean you could grab a significant
Amount of points on your funded account since there’s no consistency rule there um and then I have a long example um you could see we peaked here um we pull back we pop again um we pull back and we’re actually lower then over here but cumulative Delta stays higher which kind of leads me to believe that we are going to continue up and sure enough we get I don’t know 50 something points out of that you know um it’s just showing
You what’s happening because sometimes you’ll see the candles basically the gist of this is the candles can go down without the actual selling and if that happens you feel like the candles will um fill the imbalance and you know come back that’s the gist of it um I like to keep it up I do follow it just to see what’s going on internally and not just on candles um it it’s just another another piece of the puzzle that I look at
When I put on um high percentage trades high percentage trades are trades that I tend to go in with multiple accounts and I size up on these trades so one of the pieces is obviously cumulative Delta um along with you know a couple other things um but yeah and as you can see also we were making new lows without making new lows right here which then leads me to believe that we will you know revert to the upside and sure enough
It does come back um so it’s just kind of things like that that you’re looking at just divergences within the market um and cumulative Delta and I always look at the F minute chart it tends to do the best I am going to try finding a script once I find a good script within trading view I will post it in the comment section and in my Discord Discord is free it’s in the description of this video um but yeah pretty easy
I don’t need to go into nitty-gritty you’re just looking for if you know you’re just looking for exactly what I’m telling you you know Market is making new lows cumulative Delta is not making new lows you know Market is making new highs cumulative Delta is not following and making new highs then there’s a Divergence happening and uh you’ll probably get a reversion to the mean that’s what I’m looking for um and it does work a lot of the time so here
It is Lonesome cumulative Delta you basically just click on indicators and it’s a community indicator if you have any questions comment on the video and uh I’ll be sure to help you out all right I’ll see you guys on the Stream
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