What is delta and cumulative delta?

What is delta and cumulative delta?

In the Delta module of the Cryptovizor cryptocurrency screener, you can see data on the bitcoin spot market from the following eight top exchanges:

  • Binance
  • Bitfinex
  • Bitstamp
  • Coinbase
  • FTX
  • Huobi
  • Kraken
  • KuCoin

 

Thus, you can get real data from the entire market and at the same time not lose sight of anything during the analysis.

The Delta module (delta screener) makes it possible to see the overall picture of the market and analyze data for all trading pairs of bitcoin to USD and USDT at once, since they are the main ones and all calculations are made on them.

You will always have before your eyes only a real picture of the market situation and real trading volumes, and you will not have to limit yourself to just one exchange or trading pair.

What is delta and cumulative delta?

Delta is the difference between market buys and retail sales at each price, in each candle or bar.

The cumulative delta is the accumulative delta over a certain period of time. It displays the full dynamics of the balance of market buying and selling, starting from a certain point in time, and not just in one candle or bar.

A market order is an immediate order to open or close a position to buy or sell at the current market price.

Calculation of the delta takes place according to market, or as they say, "aggressive" orders, since it is market orders that move the price in the market.

If the delta changes in a positive direction, and the price does not rise, this indicates the presence of a major limit seller. It is because of him that the price cannot go up. Or vice versa – a negative delta and a stable price indicate that there is a major limit buyer.

If we talk about the definition of a limit order, this is an order to buy or sell at a given price, which falls into the order book. The order will be executed when the market price reaches the limit price (or better price) you specified. Such orders can be used to buy or sell an asset at a lower or higher price than the current market price.

Description of the Delta module

The Delta Cryptovizor module consists of several blocks: TradingView chart, Markets Volume block, filter by date and Overall volume.

1. TradingView Chart

The block has all the basic TradingView functionality.

On the panel on the left you can see the drawing tools, they are divided into subgroups depending on the type of tool.

In addition, you can easily adjust the width of the chart window. Drag the graph and block separator on the right.

This block contains the following buttons:

  • Timeframe switching.
  • Selection of the type of data display on the chart (candlesticks, bars, linear, area, and so on).

  • Adding basic indicators, including the visible area volume profile.

Volume profile visible range is an indicator that displays trading activity for a specified period of time at certain price levels. The indicator builds a histogram on the chart, taking into account such user parameters as the number of lines and the time period. This histogram reflects the dominant or significant price levels based on volume. Essentially, a volume profile takes the total volume traded at a certain price level over a specified time period, divides that total volume by the buying or selling volume, and then provides that information to the trader.

  • Point of Control (POC) is the price level over a period of time with the highest trading volume.
  • The ticker allows you to switch between trading pairs within the selected exchange.

Ticker is the short name of the coin listed on the exchange. It is a unique identifier within the exchange or information system.

All your markup for each exchange or selected trading pair will be saved automatically. Autosave of markup on the chart is done every 5 seconds.

You can share screenshots of your chart.

The data is displayed for the UTC time zone used by the exchanges. The current UTC time is shown on the bottom line below the TradingView block. If you wish, you can change the time zone to a convenient one by clicking on the settings icon near the clock. To change the zone, you need to go to the settings, select the Tool section and the Time zone item.

2. Markets volume block

This block provides cumulative information for each exchange, taking into account all trading pairs. It displays the information of the current candle of the selected timeframe, which is indicated in the upper right corner.

OVERALL is a graph of the average exchange rate of bitcoin against the dollar and USDT. It is also the total delta and the volume of all trading pairs of the presented exchanges. All this is in one place.

Clicking on the name of the exchange in the MARKET column allows you to open a graph of available on this exchange trading pairs BTC to USDT. 

DELTA BTC column displays the difference between filled market buy and sell orders in USDT and USD.

VOLUME column displays the trading volume in USDT and USD.

3. Filter by date

You can set the required time range for the Markets Volume block. This will allow you to find out the cumulative delta and trading volume for all exchanges together and for each separately.

4. Overall volume

This block displays detailed information on each candlestick of an open chart.

5. Navigation

If this function is active, when clicking on a candle on the chart, the line corresponding to the selected candle will be highlighted in the Overall Volume block.

Press the up button to quickly return to the top of the list.

6. Indicators of trading volume, cumulative delta and delta volume

The trading volume indicator and the TradingView delta indicator correspond to the data of the Overall Volume block. All calculations are made in USDT and USD.

The TradingView cumulative delta indicator helps you quickly determine the state of supply and demand for a selected period of time.

In the case of an increase in the cumulative delta, market orders to buy will prevail, filling someone's limit sells. In the case of an increase in the cumulative delta, market orders to buy will prevail, filling someone's limit sells. And if the cumulative delta decreases, limit buy orders are filled in the market by selling. 

Delta volume is the difference between market buys and retail sales at each price, in each candle or bar.