Order flow / Delta Volume Indicator (PAID)
2025-02-10
Category: None

Order flow Delta Volume Indicator –  Performance Update

Last week, I shared an analysis using the Order flow Delta Volume Indicator, and here’s this week’s performance update.

In the chart, the black line represents the VWAP, which helps in identifying the overall market trend. However, the key element of this indicator is the blue line—the Cumulative Delta Volume—which plays a crucial role in validating the trend’s strength.

How Does the Cumulative Delta Volume Work?

While VWAP signals the trend direction, the blue line (Cumulative Delta Volume) confirms whether the trend is genuine and strong or weak and deceptive:
✔ If the blue line moves in sync with price action, it indicates a strong, sustainable trend.
❌ If the blue line diverges from price action, it signals a potential trap—suggesting that the current price movement may not hold.

Additionally, green and red background are the volume imbalances highlight key moments of buyer and seller dominance.

Trading Signals & Strategy
	•	The indicator only generates buy signals when price is above VWAP and sell signals when below VWAP, ensuring directional accuracy.
	•	These signals provide a solid foundation for trading decisions, but profit-taking strategies are up to the trader, depending on whether they prefer long or short trades.

This tool remains one of the most effective ways to interpret market strength using Delta Volume. If you’d like to learn more or see it in action, feel free to reach out!

Thanks