What Is Delta Volume?
Delta volume (or volume delta) is the difference between buying volume (trades executed at the ask price) and selling volume (trades executed at the bid price) over a given period. Positive delta means buyers are more aggressive (more transactions at the ask), while negative delta means sellers are more aggressive (more transactions at the bid). It strips away the directional ambiguity of regular volume.
How Delta Volume Works
Cumulative Volume Delta (CVD) is the running sum of delta volume over time. Rising CVD indicates sustained buying aggression; falling CVD indicates sustained selling aggression. Per-candle delta shows the net aggression within each bar. A green candle with negative delta is suspicious (price went up but sellers were more aggressive, suggesting the move may not sustain). A red candle with positive delta suggests hidden buying.
Why It Matters for Traders
Delta volume is the closest thing to reading institutional intent in real-time. Price can go up on negative delta (often a short squeeze or thin liquidity, not genuine buying), and down on positive delta (large limit sells absorbing aggressive buyers). These divergences between price and delta are leading indicators for reversals. Traders who combine delta volume analysis with price structure (support/resistance, order blocks) gain a significant edge over those who rely on price alone.