Using the directional volume indicator with cumulative delta volume analysis allows traders to see inside the bar and identify when there is more buying or selling occurring within the highs and/or lows. The techniques Gail shows in this video, are advanced and takes time to conquer. Remember with the directional volume indicator for Multicharts, TradeStation and NinjaTrader, the price action is pre-coded into the indicator. The cumulative delta plots the volume as candlesticks and you have to measure highs to highs and lows to lows.
Using Directional Volume Indicator with Cumulative Delta to See Where the Market is Likely to Go
In this video, Gail Mercer, founder of TradersHelpDesk, explains a very simple technique for reading the Directional Volume and then the more complex technique (hidden divergence) to see where the market is likely to go. Reading the buying and selling that is occurring per bar is an advanced skill level and can take a while to conquer. For those that want to learn more about cumulative delta itself, the video training can be purchased online.
In the video, Gail begins with the simplest form of volume divergence identified with both the Directional Volume indicator with Cumulative Delta (so you can compare the differences). Gail then moves on to the more complex hidden divergence technique (higher volume with lower highs).