BT Cumulative Delta Context

3 gen

BT CDC — Cumulative Delta Change (Volume Momentum)

Overview
BT CDC (Cumulative Delta Change) measures the rate of change in volume participation, not raw volume or cumulative delta itself.
In simple terms, CDC answers one question:

“Is buying or selling pressure accelerating, decelerating, or stalling?”

Where CVD shows who is holding inventory, CDC shows whether that inventory is still being added to. This distinction is critical in professional trading.

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Inputs Summary

• Delta Source – Determines how volume imbalance is estimated
• Smoothing / Lookback – Controls sensitivity to short-term vs sustained momentum shifts
• Normalization (if enabled) – Allows comparison across sessions or assets

Default settings are designed to balance responsiveness with stability for intraday futures.

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Visual Elements

• Color-coded histogram or waveform
– Positive values indicate increasing buying pressure
– Negative values indicate increasing selling pressure

• Zero line reference
– Above zero: positive participation momentum
– Below zero: negative participation momentum

Visual emphasis is placed on changes in slope and peaks, not just crossings.

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How Traders Use CDC Effectively

CDC is best used to identify advantageous periods for trading, not individual entries.

Common professional-style uses include:

• Pressing trades only when CDC supports continuation
• Avoiding breakouts when CDC is decaying
• Fading moves when CDC spikes fail to convert into sustained momentum
• Standing down during flat CDC environments (low participation)

CDC is especially effective during:
• Session opens
• Volatility regime changes
• Trend transitions
• Range-to-trend or trend-to-range shifts

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How CDC Relates to Professional Trading Desks
Professional trading desks rarely make decisions based on absolute volume or delta alone. Instead, they focus on:

• Changes in participation
• Acceleration vs exhaustion of pressure
• Whether initiative activity is increasing or fading

CDC is a retail-accessible approximation of what institutional desks refer to as:

• Order flow acceleration
• Liquidity-taking rate changes
• Participation momentum

Directional systematic funds, CTAs, and intraday macro traders use similar concepts to determine when markets are in trend-permissive states versus balanced or rotational states.

CDC is not used as a “buy/sell trigger.” It is used as a permission filter that determines whether directional trades should be pressed, faded, or avoided.

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What CDC Signals

Rising CDC
• Participation is accelerating
• Initiative activity is increasing
• Directional continuation is more likely
• Pullback trades have higher expectancy

Flattening CDC
• Participation is no longer expanding
• Inventory is being digested or distributed
• Breakouts become fragile
• Range behavior becomes more likely

Falling CDC
• Momentum is decaying
• Exhaustion risk increases
• Fades and mean reversion gain edge

CDC is most powerful when read alongside price location (VWAP, ranges, structure) and cumulative delta (CVD).

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Who Uses Similar Tools & Methods
While CDC is not a standardized retail indicator, its logic is widely used by:

• Directional systematic futures funds
• CTA-style intraday and swing traders
• Macro desks trading index futures
• Volatility and regime-based strategies

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Important Notes

• CDC is a context and regime tool, not a signal generator
• Best used in combination with CVD, VWAP, structure, and volatility
• Most valuable when aligned with time-of-day and session behavior

CDC helps traders align with periods when professional participation is expanding—and avoid trading when it is not.

10 gen

Note di rilascio

BT ΔCDC — Delta Cumulative Delta Context
Delta-Driven Expansion / Decay Execution

***Update: Added Expansion Decay signal line
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WHAT IT IS
BT ΔCDC is a volume-first execution indicator that measures inventory flow, participation expansion, and decay.
It is an evolution of traditional On-Balance Volume (OBV), designed for better timing and trade management.

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THE THREE LINES

Flow Line (Cyan / Purple)
• Primary entry line
• Color driven by slope (impulse), not just level
• Cyan = improving delta
• Purple = deteriorating delta

Signal Line (White)
• Equilibrium of participation
• Used for context, not signals

ΔCDC Line (Green / Red)
• Measures expansion vs decay of participation
• Green = expanding
• Red = decaying

────────────────────────
HOW TRADERS USE IT

Enter near the zero line when:
• Flow Line flips direction with slope
• ΔCDC confirms (green for longs, red for shorts)
• Volatility and structure allow participation

Manage the trade using ΔCDC:
• Stay in while ΔCDC remains aligned
• Apply defensive exits when ΔCDC flips

ΔCDC often signals fading participation before price stalls.

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FOR OBV TRADERS
OBV confirms volume.
BT ΔCDC times it.

OBV confirms.
CDC executes.
ΔCDC protects.

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BEST FOR
• Trend and expansion days
• Intraday execution and trade management
• Traders who want volume to drive entries and exits

Not designed for low-volatility chop or news shocks.

11 gen

Note di rilascio

[center]BT CDC Δ (Cumulative Delta Context) — v0.3 Update[/center]

Overview
BT CDC Δ is an evolution of the original CDC tool, designed to separate:

• Directional flow (Flow + Signal)
  
• Participation health (ΔCDC / decay)
  

This update adds a dedicated delta/decay line and new visual logic to better identify when moves are gaining fuel vs losing participation.

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What’s New in v0.3

• ΔCDC (Delta / Decay Line)
  A new, independent line that plots smoothed per-bar delta.
  Green = expanding bullish participation
  Red = expanding bearish participation
  Color change often precedes stalls, rotations, or reversals
  
• Active Slope Flow Line (Optional)
  An optional slope-based color override on the Flow Line only:
  If Flow is below zero but slope turns strongly positive → Flow turns CyanIf Flow is above zero but slope turns strongly negative → Flow turns PurpleHistogram and Signal line colors do [u]not[/u] change
  
  This intentionally creates visual divergence between Flow impulse and Flow level.
  
  
• Flow ↔ Signal Spread Gradient (Optional)
  A dynamic fill between Flow and Signal that brightens as:
  The spread widens
  The condition persists
  
  This highlights active participation phases and de-emphasizes weak or fleeting signals/exhastion
  
  
• Case C (Equilibrium) Background (Optional)
  Marks low-spread / equilibrium conditions where participation is muted and patience is often rewarded.
  

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Core Visual Elements

• Flow Line (Cyan / Purple): Directional CDC oscillator (Fast EMA − Slow EMA of cumulative delta).
  
• Signal Line (White): EMA of Flow; used as a structural baseline.
  
• Histogram: Flow plotted as a histogram. Remains sign-colored only.
  
• ΔCDC Line (Green / Red): Smoothed delta showing expansion vs decay.
  
• Gradient Fill: Optional participation intensity overlay.
  
• Context Table: Displays anchor mode, VWAP posture, and state read.
  

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How Traders Use BT CDC Δ

• Context first: Use CDC with higher-timeframe structure and other BT context tools.
  
• Entry confirmation: Look for Flow and ΔCDC breaking in the same direction near the zero line.
  
• Trade management: Monitor ΔCDC for early signs of participation decay.
  
• Risk awareness: Case C and weak spread conditions often precede chop or failed breakouts.
  

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Full playbook available

23 gen

Note di rilascio

Beta test: multiple features

23 gen

Note di rilascio

Features testing