The Q-BarNetDelta indicator shows the Net Delta for each bar. Net Delta is often used in order flow analysis. It refers to the net difference between the volume of Buy and sell orders at each price level or within each time period represented by a bar on a chart.
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Net Delta = Buy Volume - Sell Volume.
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A positive net delta indicates more buying pressure (more orders executed at the ask price).
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A negative net delta indicates more selling pressure (more sell orders executed at the bid price).
Identify Buying and Selling Pressure:
Bars with a positive net delta suggest that buyers are more aggressive.
Bars with a negative net delta suggest that sellers are more aggressive.
Trend Confirmation:
Consistent positive net delta bars in an uptrend may confirm the strength of the trend.
Consistent negative net delta bars in a downtrend may confirm the strength of the downtrend.
Reversal Signals:
A change in the net delta from positive to negative (or vice versa) could indicate a potential reversal.
For example, if a series of bars in a downtrend starts showing a positive net delta, it might signal the beginning of a reversal to an uptrend.
Volume Analysis:
High volume bars with a strong positive or negative net delta indicate strong conviction by buyers or sellers.
Low-volume bars might indicate a lack of interest or indecision in the market.
Release Notes:
Version 3.002P - January 7, 2024
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Inital Release
Version 3.004P - May 25, 2024
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We added a new diamond icon above or below the bar to indicate a bar with a Net Delta Divergence. The diamond icon above the bar indicates a negative delta divergence, which occurs when the bar closes above the open but has a negative net delta. Conversely, a diamond icon below the bar indicates a positive delta divergence, which occurs when the bar closes below the open but has a positive delta.
