[VC] Cumulative Delta Histogram V1.0

11 giu 2022

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.





Disclaimer Note:
V.C Cumulative Delta Histogram It is purely Volume , Delta, Demand & Supply imbalance and comparative analysis-based tool. Before applying this Indicator to your study, you should know about Volume , Delta & Spread, Demand & Supply, and Aggressive & Passive behaviour of buyers/sellers.
Some basic understanding of Sir Richerd Wyckoff's Theory can also be helpful.