The
V.C Cumulative Delta Histogram shows
the market's ongoing
Buying/Selling pressure.
It helps to determine whether
Supply or Demand is dominating and in control.
➤If the Cumulative Delta Increases, the buyers are in control.➚
➤If the Cumulative Delta Decreases, the sellers are in control.➘
The use cases for this Indicator are vast and correlated with our other Delta Indicators. The following
examples will explain how to use this Indicator.
Example 1 EUR / USD
In the above example,
Negative Cumulative Delta Decreased & Turned into Positive Cumulative
Delta. That indicates that sellers are losing control & buyers are getting power.
As a confirmation on the '
'Box Chart Histogram'' it is evident that Demand is also
increasing.
And on
''Wave Chart Index'' as a 3rd confirmation, you can see that the Delta has also
increased compared to previous waves.
Example 2
Positive Delta on
Cumulative Delta Histogram is decreasing & Negative Delta started
increasing.
On the
Box Chart Histogram, Demand is decreasing & Supply is increasing.
Additionally, on the
Wave Chart Index, the Delta of the wave is also decreasing.
(in short, besides ''Cumulative Delta Histogram," Box chart Histogram & Wave Chart Index is also
adding additional confirmation)
Note: Two types of Delta sources are included in this Cumulative Delta Indicator.
Type A: Simple Delta
Type B: Delta %
Simple Delta is the difference between Net Buying - Selling pressure.
Delta % also works in the same calculation, but a
Volume weighted algorithm is applied on it.
You may use any of them that suits your analysis.
VC Cumulative Delta Histogram Settings & Inputs
Source:
Allows you to choose the source, Between Simple Delta & Delta %.
Cumulative Length:
Allows you to Change the cumulative length.
Positive & Negative Color:
It allows you to change the colors.
Style Menue
Allows you to change the style & color of the histogram.
