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PipTick Volume Delta MT5
PipTick Volume Delta indicator shows the difference between Bid volume and Ask volume. Basically, it shows which side of the market participants (Buyers or Sellers) were more active in a certain period of time. Calculation of Bid volume and Ask volume is based on our PipTick Bid-Ask Volume indicator.
As we all know, the forex market is decentralized and therefore we do not have a reliable information about real volume. We also do not know actual and historical values of the Bid volume (Sellers volume) and Ask volume (Buyers volume). However, we can use tickcount volume of Bid and Ask prices to determine the activity of buyers and sellers! So, with our special algorithm we can get a very similar volume as in the futures market. With this functionality, we are able to analyze the flow of buy and sell orders.
How to use our PipTick Volume Delta indicator?
First, we have to note that it is absolutely counterproductive to use our indicator on the higher time-frames. The number of buyers and sellers is balanced on the higher time-frames, so the indicator has no informative value. That's why we recommend to use it on the charts from M1 to M5.
The order flow context of the market should be analyzed for the last ten to thirty minutes. It is always necessary to assess the activity of both sides, buyers and sellers.
Basically, there are several scenarios of the order flow context:
|Buyers and Sellers activity/ Market condition||Delta is positive||Delta is negative|
|The market is in an uptrend||Buyers have the power to push the price up. Look for buy trade.||Sellers try to push the price down, but fail to do it. Look for buy trade.|
|The market goes sideways||Buyers try to push the price up, but fail to do it. Look for sell trade.||Sellers try to push the price down, but fail to do it. Look for buy trade.|
|The market is in a downtrend||Buyers try to push the price up, but fail to do it. Look for sell trade.||Sellers have the power to push the price down. Look for sell trade.|
- Do not switch between timeframes when the indicator works.
- The indicator shows the difference between Bid volume and Ask volume
- Simple comparison of the activity of Buyers against Sellers
- Alert notifications for indicator values
- Works on every timeframe
- The indicator is non-repainting
- Real-Time data needed
- Saving the indicator values to a file
- Excellent results in conjunction with Support and Resistance levels
- Ideal tool for scalping
- Very fast calculation
- Available for MT4 and MT5
- Volume_Delta_Mode - Allows to choose between Negative Down/Positive Up, Negative Up or Positive Up settings
- Record_Ticks_History - Allows to save the tick history data in to file
- Histogram_Thickness - Thickness of output histogram
- Color_Positive_Delta - Color of bid volume
- Color_Negative_Delta - Color of bid volume
- Alert - Allows to enable or disable alert notifications when the delta volume exceeds a certain value
- Alert_Threshold - - Allows to choose a threshold value
- Alert_Sound - Allows to choose the alert sound
- Volume_Delta - Value of delta volume
For more information, visit the PipTick Volume Delta product page.