PipTick Volume Delta

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. As you'll see, it's a real Holy Grail!

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:

	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.

Recommendations

Do not switch between timeframes when the indicator works.

Main features

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

Inputs

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