Delta is the difference between aggressive buying volume (market orders hitting the ask) and aggressive selling volume (market orders hitting the bid) within a candle or time period. Cumulative delta tracks the running total over time. Divergence between price and cumulative delta reveals whether rallies/selloffs have genuine buyer/seller conviction.
Positive delta = more aggressive buying than selling, Negative delta = more aggressive selling, Cumulative delta divergence from price = weakening move, Delta at specific price levels shows who has control, Volume delta POC shows where most aggression occurred
Bullish price + bullish delta = healthy trend (continuation), Rising price + falling cumulative delta = bearish divergence (reversal setup), Falling price + rising cumulative delta = absorption (bullish reversal), Delta extreme spike + price reversal = exhaustion
Delta divergence trades: enter when price reverses after divergence confirmation, Exit if delta re-aligns with price direction, Use delta to confirm or reject candle patterns
Tick charts, 1M, 5M, 15M for active trading; 30M+ for analysis
Delta analysis works best in liquid futures markets (ES, NQ, CL) where real volume data is available. Crypto exchange volume may include wash trading. Forex 'volume' is tick volume, not true order flow.
The Point of Control is the single price level at which the most volume was traded during a specified period. It represents the 'fair value' according to market participants and acts as a magnet — price tends to gravitate toward the POC. The naked POC (from a prior session that was never revisited) is one of the most reliable support/resistance levels in order flow trading.
Market Profile organises price data into 30-minute periods called TPOs (Time Price Opportunities), creating a bell-curve distribution that reveals market behaviour patterns. Developed by J. Peter Steidlmayer at the CBOT, Market Profile identifies day types (Normal, Trend, Double Distribution, etc.) and provides a statistical framework for understanding auction market theory.
The Value Area is the price range containing approximately 70% of a session's or period's total traded volume. The Value Area High (VAH) is the upper boundary and Value Area Low (VAL) is the lower boundary. These levels act as dynamic support/resistance and are central to market profile and volume profile trading strategies.
Footprint charts display the actual volume traded at each price level within a candle, broken down by aggressive buyers (market orders hitting the ask) and aggressive sellers (market orders hitting the bid). This granular view reveals exactly where buying and selling pressure occurs, exposing absorption, exhaustion, and imbalance patterns invisible on standard charts.