Section 11: Delta Entry (Daybreak Intermediate Entry)
Section 11 - Delta Entry (Daybreak/ Intermediate Entry)
Confluence is a critical factor that traders should consistently seek out on their charts. Here at dRisk, our team places great emphasis on identifying confluence points between our algorithms and indicators when engaging in trading activities. Daybreak alone boasts an impressive average accuracy rate of 76% on the lower end, underscoring the significance of confluence in enhancing our chances of success. In the following discussion, we will explore the powerful synergy that arises when Daybreak and Delta, two of our most valued assets, converge, leading to a substantial increase in the likelihood of a successful outcome.
Short Introduction to Delta
Introducing our only manually implemented indicator Delta. Delta is named after Delta Zones. The Delta Zone is a financial metric derived from the disparity between the volume of buying and selling activities observed at various price levels over the past 10 to 15 years.
Markets exhibit a historical memory, particularly in their selection of equilibrium points and opportunities for acquiring or distributing assets at discounted rates. These points are typically favored by institutional investors for conducting their transactions.
In contrast to individual retail traders, institutions engage in substantial volume trading among themselves. Delta Zones play a pivotal role in maintaining market liquidity. When institutional investors anticipate accumulating assets for an upward price movement, they strategically place a significant volume of orders near the lower boundary of these zones, effectively protecting price from undergoing substantial declines.
In this strategic game, institutional investors frequently capture and recapture these Delta Zones, manipulating prices in their desired direction. Once a Delta Zone is captured, it becomes a focal point of defense, either within the zone or along its periphery.
What is the method of finding these Delta Zones? To identify these zones we look for;
Total volume per price level
Net volume per price level
TPO charts (time, price, opportunity)
COT reports (commitment of traders)
Institutional supply, demand for larger accumulation/ distribution
Auction market theory
These zones are manually added on the backend and will automatically upload on your chart.
In the image below, we present an illustrative instance of a high-probability entry point to the downside(SELL order), triggered when Daybreak generates a signal while coinciding with Delta.
The entry mentioned earlier was exceptionally high in terms of probability. Daybreak, a signal already known for its reliability, not only signaled an entry but also coincided with Delta. This dual confirmation significantly increased our chances of success by identifying a substantial influx of sell pressure at Delta.
As evident in the image below, this trade turned out to be yet another successful one, with both Tp1 and Tp2 targets being successfully reached.
