5 Best Platforms for Volume Delta Analysis

Volume delta is a powerful analytical tool that can unlock hidden insights into market dynamics. In this article, we explore the world of Volume Delta analysis and conduct a comparative review of Volume Delta tools on five popular trading platforms.

TL;DR

• Volume delta is a measure of the difference between the volume of buying and the volume of selling at each price level in a given market.
• By evaluating the balance between buyers and sellers, Volume Delta can provide insights into the strength and direction of market activity.
• Available functionality, customization options, and ease of use of Volume Delta tools can vary across different trading platforms. Choosing the platform that best meets your needs is an important part of a successful Volume Delta analysis.

What is Volume Delta?

Volume delta is a term used in financial trading to describe the difference between the buying and selling volume of an asset at different price levels. It can provide insight into the strength and direction of the market participants' sentiment.

Volume delta is calculated by subtracting the total volume of buying trades from the total volume of selling trades for each designated timeframe. The resulting value can be positive, negative, or zero.

A positive Volume Delta indicates more buying than selling, usually suggesting bullish sentiment and upward pressure on prices, while a negative Volume Delta implies more selling than buying, most often indicating bearish sentiment and downward pressure on prices. A zero Volume Delta suggests a balance between buying and selling volume.

Types of Volume Delta Tools

Bar Delta Indicator

The bar delta indicator visually displays the Volume Delta for each price bar or candlestick on the chart. It typically takes the form of a bar graph with color-coded bars/candles. Red bars generally indicate negative Volume Delta, while green bars represent positive Volume Delta. The height of the bars corresponds to the magnitude of the Volume Delta.

Cumulative Volume Delta Indicator

The Cumulative Volume Delta indicator (CVD) is a tool that calculates the cumulative difference between buying and selling volume over a period of time. Unlike the bar delta indicator that shows the Volume Delta for each individual bar/candle, the CVD indicator adds up the Volume Delta values across multiple bars. The Cumulative Volume Delta (CVD) is used to track the overall buying and selling activity in the market. The indicator is typically displayed as a line or histogram chart positioned below the price chart.

Delta Divergence Indicator

The Volume Delta Divergence indicator (VDD) is designed to detect divergences between the asset price and Volume Delta. It identifies instances where the price and Volume Delta exhibit contrasting behavior within the same time interval. For example, when the asset's price moves higher but the Volume Delta simultaneously decreases, it is known as a bearish divergence.

Divergences between the asset price and Volume Delta can serve as a signal for potential trend reversals or changes in market dynamics.

Volume Delta Measure (Ruler)

The Volume Delta Measure is a tool that enables users to view cumulative Volume Delta between two selected points on the chart. 

Volume + Delta indicator

The Volume + Delta indicator is an indicator that visually presents Volume Delta in relation to the total trading volume for each candle. Each bar of the Volume + Delta indicator is an overlay of two bars, one representing the volume for the corresponding candle and the other representing the delta for the corresponding candle.By observing Volume Delta relative to the total volume, traders can assess the concentration of buying or selling pressure within a given volume.

Overview of Volume Delta Tools on 5 Popular Trading Platforms

TensorCharts

Volume Delta Divergence

On TensorCharts the Volume Delta divergence indicator is represented by arrows overlaid on the price chart, indicating bullish and bearish divergences. Traders can adjust the number of periods considered in the calculation.

Cumulative Volume Delta

TensorCharts's CVD is shown as a line graph overlaid on the price data. The interval setting determines the moving window for cumulation, with 0 indicating cumulation from the beginning. The indicator is currently only available on TensorCharts as part of their paid plans.

Volume Delta Measure

The measure tool on TensorCharts displays total volume, buy volume, sell volume, Volume Delta, price change, percentage price change, and duration for a specified time period on the chart.

Volume + Volume Delta

 TensorCharts has two types of “Volume + Delta” indicators. The first overlays Volume Delta on the total volume for each candle, while the second overlays buy volume and sell volume as two separate bars on the volume bar for each candle.

Summary

TensorCharts provides a diverse range of volume delta tools, including Volume Delta Divergence, Cumulative Volume Delta, Volume + Volume Delta, and Volume Delta Measure. However, the Bar Delta indicator is not currently included. While customization of calculation periods is available for CVD and VDD, plotting options are limited for all indicators. Additionally, CVD is only accessible through the paid plan.

Atas

Cumulative Volume Delta

The cumulative Volume Delta (CVD) indicator on the ATAS platform can be visualized in different chart styles including lines, bars, or candlesticks. These representations can be merged with the price chart or subchart indicators, or they can be displayed as separate subchart indicators.

Volume Delta

ATAS’s Volume Delta tool has four styles of visual representations: candles, high/low, histogram and bars. It also features a "minimize mode" to optimize chart space, and filters for refining indicator values based on bar direction, delta type, and volume thresholds. Similar to the Cumulative Volume Delta, the Volume Delta indicator can be merged with other indicators or the price chart, or displayed on its own subchart.

Delta Divergence

ATAS enables users to view divergences between price action and Volume Delta by enabling the "show divergence" option within the Volume Delta indicator settings. When enabled, this feature renders dots on the price chart which signify instances where a bullish candle registered a negative delta and a bearish candle had a positive delta.

Volume Delta Measure

The ATAS measure tool provides data on the number of bars/candles, the time elapsed, price change, the total number of ticks, cumulative volume, cumulative Volume Delta, and profit or loss (per lot) over a selected period.

Summary

Like TensorCharts, Atas offers a comprehensive selection of volume delta tools, covering four of the five types discussed in this article. The platform provides diverse visual representations and layout options for all indicators, but its calculation settings are relatively limited. Additionally, It is important to note that ATAS is exclusively available as a downloadable Windows app.

TheKingFisher

Cumulative Volume Delta

TheKingFisher's Cumulative Volume Delta (CVD) indicator is exclusively represented as a line plot. Traders have the flexibility to customize the scaling of the line according to their preferences. They can choose between independent scaling, aligning it with other indicators on the chart, or scaling it in relation to the price chart.

Volume + Volume Delta

TheKingFisher’s"Volume" tool offers users the ability to overlay a delta value on each volume bar.

It is also worth noting that TheKingFisher allows users to access and edit the JavaScript code for each indicator available on the platform.

Summary

TheKingFisher offers a limited range of volume delta tools, with fewer visual representation options when compared to most platforms in this overview. The number of periods considered in the calculation for CVD can not be customized and layout options for all indicators are also limited. However, a significant advantage of the platform is that users have the ability to edit the source code of all indicators, allowing for extensive customization according to their individual requirements.

GoCharting

Bar Delta

 In GoCharting, the Bar Delta indicator is presented as candles in a subchart. As an optional visualization, up to three moving average lines with customizable periods and the Bollinger Bands indicator can be overlaid on GoCharting’s Bar Delta.

Cumulative Volume Delta

When the "cumulative" option is enabled in the settings of the “Delta Bars” indicator in GoCharting, the default Volume Delta graph is replaced with the Cumulative Volume Delta graph. The Cumulative Volume Delta indicator offers two plot styles: candles and bars. As with the Bar Delta, users can overlay up to three moving average lines with customizable periods and the Bollinger Bands indicator on the Cumulative Volume Delta chart.

Delta Divergence

 “Divergence” is also an option in GoCharting’s Delta Bar settings. When enabled, it overlays colored bands on the Bar Delta (or Cumulative Volume Delta) graph to indicate where price and volume (cumulative volume) are diverging.

Summary

GoCharting offers a variety of volume delta tools, including Bar Delta, Cumulative Volume Delta, and Delta Divergence, but visualization options, as well as calculation and layout settings are relatively limited.

It is important to note, that in the free version of GoCharting, access to data from exchanges other than Bybit is not available.

TabTrader

Bar Delta

In TabTrader, the Delta Bars indicator is represented as a subchart bar graph with positive delta values displayed above the zero line and negative values shown below the zero line.

CVD

As with the Bar Delta indicator, the Cumulative Volume Delta indicator also appears as a positive-negative subchart bar graph. In the indicator settings, users can select the number of periods for the moving window for cumulation.

Volume + Volume Delta

The Volume + Volume Delta indicator provides two display options: it can be shown on a separate axis beneath the chart or combined in a single axis with the price chart.

Volume Delta Measure

 TabTrader’s measure tool shows information about the volume, price change (both percentage and absolute), Cumulative Volume Delta, and the number of bars/candles within a selected time period. 

Summary

Similar to the first two platforms in this overview, TabTrader supports four out of the five types of delta instruments discussed in this article. The platform also provides essential calculation settings for most of its tools, including the ability to customize the number of periods for CVD. However, TabTrader currently offers limited variety in terms of visualization and layout options.

General Overview of the Platforms

When evaluating Volume Delta analysis on different trading platforms, it is important to consider their overall functionality and features. 

This encompasses factors such as the diversity of supported exchanges and trading instruments, compatibility across different platforms, timeframe options, trading functionality, and more: 

Supported exchanges: A trading terminal with support for a diverse variety of exchanges allows traders to access a wider range of digital asset markets, expanding their trading opportunities.

Compatibility across different platforms: A cross-platform trading app enables users to analyze markets and perform trades from various devices and operating systems, offering convenience and flexibility.

Timeframe options: Trading platforms offering various timeframe options can accommodate traders with a diverse range of trading strategies.

Indicators: An extensive selection of technical indicators is crucial for thorough market analysis. Confirming signals from multiple indicators helps reduce false readings and enhances trading decision-making.

Help Center: A comprehensive help center can significantly improve a trader’s experience with a trading platform. When traders can effortlessly access resources that improve their understanding of the platform's tools and functionalities, they gain the confidence and knowledge to utilize the platform more efficiently.

The table below provides a general overview of the key general features provided by each platform discussed in this article.

Final Thoughts

The effectiveness of volume delta analysis often depends not only on the variety and quality of volume delta tools but also on the overall platform's functionality. Opting for a well-rounded and feature-rich platform can greatly enhance the effectiveness of volume delta analysis and lead to more successful trading outcomes. 

With support for 18,000+ trading instruments across 20+ major crypto exchanges, seamless accessibility on iOS, Android, and the Web, synchronized data and alerts on all devices, a built-in non-custodial wallet, and DEX trading capabilities, TabTrader offers a comprehensive and cutting-edge trading experience.

FAQ

What is Volume Delta?

Volume delta is a measure of the difference between the volume of buying and the volume of selling at each price level in a given market.

How is Volume Delta calculated?

Volume Delta is calculated by subtracting the total volume of buying trades from the total volume of selling trades for each designated timeframe. The resulting value can be positive, negative, or zero, indicating whether there is more buying or selling pressure in the market.

What does a positive or negative Volume Delta indicate?

A positive Volume Delta indicates more buying volume than selling volume within a given period, suggesting bullish sentiment and upward pressure on prices. Conversely, a negative Volume Delta implies more selling volume than buying volume during a given period, indicating bearish sentiment and downward pressure on prices. A zero Volume Delta suggests a balance between buying and selling volume.

How can I use Volume Delta in my trading strategy?

Volume Delta can be used to confirm trends, identify potential reversals, and assess the strength of price movements.

What is the Cumulative Volume Delta (CVD) indicator?

The Cumulative Volume Delta (CVD) indicator tracks the cumulative difference between buying and selling volume over time. It helps traders assess the overall market sentiment and identify trends in buying or selling pressure. CVD is typically displayed as a line or histogram chart below the price chart.

What are the different types of Volume Delta tools?

Some of the popular Volume Delta tools include the Bar Delta indicator, Cumulative Volume Delta indicator, Delta Divergence indicator, Volume Delta Measure (Ruler), and Volume + Delta indicator.

Which trading platform is best suited for Volume Delta analysis?

The best trading platform for Volume Delta analysis varies depending on individual preferences, trading goals, and specific analysis requirements.

Can Volume Delta analysis be applied to different markets, not just cryptocurrencies?

Yes, Volume Delta analysis can be applied to various financial markets, including stocks, forex, commodities, and cryptocurrencies.