Read the Volume Delta Indicator Inside a Candle

How volume delta appears on the chart

The volumes show the number of transactions made, but they don't tell you which ones were the most, and many people mistakenly believe that if a candle is red, it's won by bears, and in fact, the candle of volume always repeats the color of a candle and is often misleading.

The volume delta is conveniently placed under normal vertical volumes, and it accurately analyzes the distribution of trades inside the candles, and it shows which side was the real advantage and how strong.

• The color shows who won: green for the buyers, red for the sellers.
• The figure shows the strength of the advantage - the difference between purchases and sales - from 1 to 10.
• The painted figures highlight the maximum advantage - 7 points or more.

How to use volume delta

Detailing volume candles improves understanding of the current trend and helps to find strong entry and exit points in advance when the advantage is just beginning to form.

• Green - buyers dominate: confirms the uptrend and purchase transactions.
• Red color - dominated by sellers: confirms the downtrend and sales transactions.
• Extreme value is a signal that one of the parties has won a “crushing” victory: the price of a few more candles may move towards the winners, work in this direction.

🟢 Trades with upward momentum🔴 Short trades

The green, colored delta values indicate a strong bullish advantage, and usually after a strong bullish advantage, the price moves up for a while.

The red, colored delta values indicate a strong preponderance of bears, and usually after a strong preponderance of bears, the price moves down for a while.