If you see a higher high but the cTrader volume delta indicator shows less ask volume then the chances are that it is a top or turning point and this is called divergence, the price and the actual demand will be seen as contradicting each other.
It is known that the forex market is decentralized and as we do not have any credible information about the real volume, on top of that we also do not know the historical values of the Buyers & Sellers volumes. But the good news is that we can still use the tick-count volume of Bid and Ask prices to determine the activity of all buyers and sellers.
Cumulative Delta Volume
There is also an option to show the sum of the delta volume bars by subtracting the buy volume from the Sell volume, you can specify how many bars you want to sum up with the parameter called Bars Back. This is similar to a cumulative delta indicator, but just uses a set number of bars instead, if you want to simulate a cumulative indicator just increase the bars back value.
Custom Delta Time-frame
A powerful setting of this indicator is the ability to choose a different timeframe for the delta indicator than is visible on the chart, the example below shows the trading volume of a 5-minute chart while looking at the price action of the 1-hour chart, this would help with fine-tuning your entry or exit points.
Best Usage of Indicator
It is best to use this indicator on lower timeframes from 1-minute to 5-minutes, this is where we have more data on the buyers and sellers, the higher timeframes show a more balanced volume and is harder to distinguish.
Even though this indicator is used on lower timeframes you can still be warned on higher timeframes when there is a large amount of volume being traded, this indicator has 3 different types of alerts when the delta volume reaches a pre-set target.
The delta volume is displayed on the chart either top-left, top-right, bottom-left or bottom-right and it shows the current delta volume being traded, it turns green if it is bullish and red if it is bearish, the bearish delta value is a negative number.
Indicator Settings Explained
The settings window below shows the indicator configuration values.
- Delta Timeframe - this is the custom timeframe to display volume data.
- Status position - this is the position on the chart of the delta volume text.
- Volume trigger - this is the value you set to trigger an alert.
- Minus value for the red bar (bearish).
- Plus value for the green bar (bullish).
- Show pop-up - option to show a windows pop-up message when an alert happens.
- Show Cumulative Data - If selected then the cumulative delta volume will be shown going (x) bars back.
- Increase to a high value to get the volume for the whole data series.
- Cumulative Bars Back - how many bars (candles) back are used for the cumulative volume calculation.
- Send email - option to send an email alert
- Email address - the email address that the alert message is sent.
- Send a Telegram - option to send a telegram message when an alert happens.
- Bot Token - this is a telegram credential required to send a message.
- Chat ID - this is a telegram credential required to send a message.
Telegram is an instant messaging service that allows you to receive messages as soon as they occur directly to your PC, tablet or mobile phone.
What is the Telegram Messaging Service?
How to Configure Email & Telegram
Also included with this download you will have the Email & Telegram Testing Tool which will help you set up your accounts and test them to make sure they are working.
Watch a Video Explainer
The video has been uploaded to 1080p High Quality, so do not forget to set your U-Tube video quality to 1080p HD.
Duration: 6 minutes - Watch full-screen on YouTube
How To Install & Open Indicator's
First, make sure you have the cTrader trading platform installed and then simply unzip the file and double-click on it to automatically install onto the platform.
Need Any Help?
You can join a Telegram community and chat with other traders to discuss, share and ask for help.