Delta
The difference between buying volume (at the ask) and selling volume (at the bid). Cumulative delta reveals which side truly dominates.
Delta compares volume executed on the buy side (at the ask) and the sell side (at the bid). A cumulative delta rising while price stalls signals quiet accumulation; a price/delta divergence often precedes a reversal.
In depth
Delta rests on a simple convention: a contract executed at the ask (the buyer 'paid up' to the seller's price) counts positive, a contract executed at the bid counts negative. A candle's delta is the sum of these signs; cumulative delta (CVD) is their running total across the session. It reflects real pressure at execution, not the intentions displayed in the book.
Delta's most powerful use is divergence: when price and delta tell two different stories. A new price low not confirmed by a new delta low means sellers are pushing but can no longer drive price down, a fatigue that often precedes a reversal.
On DeepCharts, show cumulative delta below price and look for mismatches: price rising but delta stalling (buying running out of steam), or price falling but delta rising (buy-side absorption). Divergences at session extremes, near a liquidity wall, are the most reliable.
Price makes a new low but cumulative delta makes a higher low → bullish divergence.
Taking a delta divergence as a standalone signal. A divergence can persist a long time before price reacts, or never resolve. It gives context, not timing: you need a price trigger (level rejection, break) to act.
Frequently asked
Delta vs volume: what's the difference?
Volume measures the total quantity traded, with no direction. Delta adds the direction: how much of that volume hit the ask (aggressive buyers) versus the bid (aggressive sellers).
What is a price/delta divergence?
It's when price makes a new extreme that cumulative delta doesn't confirm. A sign the side pushing price is losing force at execution: a warning of a possible reversal.
Is delta reliable on every instrument?
It's most reliable on centralized, high-volume markets like futures (NQ, ES, FDAX). On fragmented or thin markets, bid/ask attribution is noisier.
Want to get better at order flow?
We discuss flow, liquidity and our trades live, every day, on the OrderFlowFutures Discord. Join us, it's free.
Join the Discord for free7 online·38 members·Free · instant access