Section 35: About DELTA
Section 35 - About DELTA
Introducing Delta
Introducing Delta, our powerful indicator, emerges from a meticulous analysis of the difference between buy volume and sell volume on every price level, spanning an extensive historical dataset spanning 10-15 years.
In the dynamic realm of financial markets, an intriguing phenomenon known as "market memory" takes center stage. This phenomenon involves the markets' ability to retain specific areas of balance, acting as crucial points for accumulation and distribution activities. These areas are highly favored by institutional players as they conduct their strategic maneuvers.
Distinguishing themselves from retail traders, institutions engage in high-volume trades amongst each other, making the concept of Delta Zones essential. These zones not only serve as liquid points in the market but also offer profound insights into the actions of smart money. When institutions accumulate positions for an upward move, they strategically position significant volume near the bottom edge of the Delta Zone or close to the stop price, effectively thwarting substantial downward movements.
The tactics employed by smart money entail capturing and recapturing these zones, adroitly steering the price in their desired direction. Once a Delta Zone is captured, it evolves into a crucial battleground between buyers and sellers, fiercely defended by market participants within and around its edges.
Delta Zone gives traders invaluable information, illuminating market dynamics and unveiling the strategic moves of institutional players. Armed with this significant knowledge, traders can make more astute decisions, grasp market sentiment, and potentially align their strategies with the actions of smart money.
The method of finding these zones involves a comprehensive approach, including:
Total volume per price level
Net volume per price level
TPO charts (time, price, opportunity)
COT reports (commitment of traders)
Institutional supply and demand for larger accumulation/distribution
Auction market theory
By incorporating Delta Zone into your trading toolkit, you gain an enhanced comprehension of market movements, elevating your potential for successful trades.
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