TCumulative Delta

NOTE: The TCumulativeDelta illustrates the buying and selling pressure in the market. It helps determine whether supply or demand is dominating and controlling the price action.

Example 1: /CL - 1 min

Example 2: /RTY - 1 min

Example 3: /BTC - daily

When is Buying Selling and Selling Buying?

When the cumulative delta rises from one buying block to another, it suggests significant buying activity in the market. Conversely, when the cumulative delta moves from selling block to another one, it indicates heavy selling. This leads many to believe that when the CVD (Cumulative Volume Delta) increases from buying to buying, the market is bullish, and when it increases from selling to selling, the market is bearish. However, this isn't always true.

Hidden selling may be occurring even when the cumulative delta increases (blue to blue), as passive or "limit" asks need buyers to fill them. This is where the concept of the Composite Operator in Wyckoff’s theory comes into play—indicating that the operator is distributing shares. This results in a trading range where price attempts to break resistance multiple times but eventually fails.

The cumulative delta shows buying pressure increasing, even while the price is declining, signaling a divergence. A good short entry point can often be identified on the last "no demand" wave on the TWave chart.

Example 4: /ES - 1 min