What is Delta? Delta is a greek defined as "change in".
The Volume Delta Footprint indicator plots the change in buyers vs. sellers. It weighs the buyers and the sellers on a scale to see who's in control of the current bar; green for buyers, red for sellers. The weighting of the scale is shown in the accumulated bid and ask figures for that bar.
Sellers X Buyers, or Bid X Ask.
100 X 200
This means 100 sell orders and 200 buy orders.
In the above chart you'll see a number under the current priece bar (-5). This represents the delta being tilted to the sell side.
The red rectangle in the bottom right-hand corner with a reading of [8x3] shows us that 8 sellers are in control and that there are only 3 buyers built into the current bar.
Let's check our work:
The calculation for this is based on recording of real time data of the time and sales.
The Volume Delta Footprint indicator can be used on any timeframe and can be handy when tracking Daily bars to know if there are more buyers or sellers built into the current bar. It also comes in handy when there is a divergence. A divergence is where the current bar is trading on its highs but has neutral to negative delta.
The Volume Delta Indicator is very useful for scalping on smaller timeframes such as tick charts, volume charts or minute charts.
PRO TIP: 1000 Volume, 3 Minute, 5 Minute, 10 Minute, 30 Minute, 60 Minute, 120 Minute and Daily bars are excellent for delta tracking.
This indicator is built for NT7 and includes a lifetime Machine ID License for 1 computer terminal.