:: Strategy Trader ::

[Scalping Strategy]

Cumulative Delta Expo

(Works better with Onsen Discovery Volume)

Cumulative Delta is the difference between buyer and seller. The delta is
positive when there are more purchases than sales, and the delta is negative if
there are more sales than purchases. Consequently, the Cumulative Delta is
the indicator that summarizes the delta values for a given period of time.
My settings: I am applying “volume delta” instead of “estimated”. It will also work the same way
with enhanced volume. Keep in mind, in the example you will not see signals, confirmation lines,
trend dots and else because I do not require the whole assistance as I have handful of experience to
work with delta in the past. Therefore, I will provide example from the naked cumulative Delta.

Note: You can apply your own setting based on time frame and startegy, as long as you understand the way Cumulative
Delta works. We do not need to use Onsen Discovery for this strategy. Onsen Discovery and Cumulative Delta almost
has the same premise. Many of you are already using Onsen Discovery, that’s why I keep it in the example.
Important Notes:
- In an up move, presumably when price is approaching to a resistance or near to previous
high, if there is aggressive climax from positive Delta that means a probable reversal. Panic
buyers or late buyers in the market or vice versa for down move.
- If Delta candles are moderately sized and moving with the price then it is a steady trend.
- Cumulative Delta also captures divergence.

Example 1: US100 5 min

- Negative Delta candles are aggressive and price is falling with abnormal volumes. We expect
a possible reversal or pullback.
- Discovery is indicating this down move of the price has a less volume and showing
divergence.

- Entry: Our bias is bullish, therefore, we will be expecting strong bullish candles, previous low
as violated (low 2 could not hold and price closes above low 1), weak bearing candles and so
on. Same concept for short position.
Example 2: US100 5 min

- When price was approaching to a resistance (previous high), look at the Delta, it creates a new
higher high when price failed to create a new one. At resistance, there is a bearish piercing
and a shooting star candle. Indicating bearing pressure (I drew an order block candle as all).

Example 3: US100 5 min

- Again, price is in a downtrend and sudden increase of a negative Delta along with the
exhausted volume (abnormality in volume in the wrong side of the market due to panic buyers
or sellers, in this case- seller). Moreover, Onsen discovery is showing the negative volume is
fading is response to the price. So, a possible long entry.
Example 4: US100 5 min

- Now you know what happened in the situation 1 and situation 2. However, in the situation 3,
after breaking out of previous resistance price moved with adequate volumes. Cumulative
Delta volumes are also showing heavy buying activity in the market.

Example 5: GOLD 1 min

- Another strategy you can apply instead at support of resistance concept, which is trend
following. The very first situation is already explained. Now in the case for situation 1, 2 and
3, look at the Cumulative Delta candles, they are below the mid line, which indicates more
selling activities (and Discovery volume strength is also below the mid line). Therefore, we
can be seller in every pull back.
- For the situation 4, we already know why we could be buyer.
 - Situation 5 is caused by panic buyers therefore price divergence between the chart and
Cumulative Delta indicator.
- In the case for 7, price is failing to create new high and previous high is violated. Therefore,
we are expecting trend reversal and delta candles are gliding with the price. Cumulative Delta
comfortably transferred from upper mid line to lower mid line in this down move.

Example 6: BTC 5 min

- Situation 1 and 2 are explained before. Situation 3 is the same logic of situation 7 form the
gold example. Cumulative Delta, x and y, in response to the price created a divergence.
Nonetheless, price is failing to break the resistance.
- Situation 4 is understandable from the previous examples.
- At situation 5, we have double top (also a resistance area from the left) and cumulative delta
divergence.

Good Luck!

Note: Please check the Z’s VIP room & other trading room for more examples from the
live market and go through with those recommended educational contents to understand
the market makers sentiment & increase your accuracy of Cumulative Delta.

Hasan Onsen
Equity & Currency Trader

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