Pattern of the DELTA indicator - absorption
Such situation occurs when a large number of market orders cannot move the price in the desired direction. For convenience, we add the Cluster Statistic indicator to see the information about delta and volume in each bar at the bottom of the screen.
Firstly, we mark the significant (in our subjective opinion) levels with black horizontal lines on the 30-minute chart, and then we go to the cluster charts to estimate absorption.
In the bar number 1 the delta is negative, but the price haven`t reached the level, which we marked, by 1 tick. In the next bars (which we have marked with a black rectangle) the delta is negative, but volumes have decreased, while the price is moving in a flat.
Then growth comes on positive delta and bullish bars.
#ATASFunctionality #Indicators #DELTAindicator
Such situation occurs when a large number of market orders cannot move the price in the desired direction. For convenience, we add the Cluster Statistic indicator to see the information about delta and volume in each bar at the bottom of the screen.
Firstly, we mark the significant (in our subjective opinion) levels with black horizontal lines on the 30-minute chart, and then we go to the cluster charts to estimate absorption.
In the bar number 1 the delta is negative, but the price haven`t reached the level, which we marked, by 1 tick. In the next bars (which we have marked with a black rectangle) the delta is negative, but volumes have decreased, while the price is moving in a flat.
Then growth comes on positive delta and bullish bars.
#ATASFunctionality #Indicators #DELTAindicator