The BEST Trading Indicator? World Champions reveal the secret CVD Strategy.

What do you think is the best trading indicator? Most traders fail and lose money because they choose models they are never working with. The cumulative delta. With the real delta of the market, you will understand very deep what happened at the market. And if this is interesting for you, look this full video. I translated this with AI because my English is not perfect, but I understand the markets and, and how they works, listen and feel comfortable with it.

Thank you. A wonderful day to you all. I'm excited to talk to you today about cumulative delta and delta in general to raise a bit of awareness about it because I think this tool is often not used quite correctly and especially when it comes to looking at extremes, very sharp movements or very slow sideways phases. It. It can be very helpful if you interpret it correctly. And that's exactly what I'd like to show you today. Specifically when markets are moving very fast, what you should and need to pay attention to and how we can use that for you. Of course, you also need to use other appropriate filters alongside it because it's no use if you just have the cumulative delta somewhere in the middle of the chart. It's just like with other setups. You need to know what you're looking for. So at which points does it even make sense to look out for it? When can I use it? Maybe plan a breakout better with it? For example, when a market is in a sideways phase and the delta keeps getting more negative. And when a breakout happens, what do I need to pay attention to? Or also, if I want to technically identify a trend reversal pattern, it makes a lot of sense to check whether there's an exhaustion among market participants. And that's exactly what we're going to do today. And I'm happy to be able to present this to you and to explain in more detail how we use all of this at trade the traders so that in the end we can gain an advantage and also have a good overview because it's simply very helpful. So now I'd like to show you what we can use the cumulative delta for. First, it's important to know that there is a delta for each individual candle. That means I can set it up as I like for 15 minutes, for 5 minutes, for 3 minutes, for 100 minutes, it doesn't matter. And then I can read what the delta is in this candle. What does delta mean? Delta means the total accumulated buying actions minus the corresponding selling actions. This calculation then provides you with a clear and understandable final result. And for example, if you see a 2 here, then you know that in this time Frame you, in this example, five minutes. There were in total during the underlying period I'm referring to here, two more buyers than sellers. Of course, that's relatively little. Now I have the next candle and for example, it could look like this. The market was very low, and then it has a green body and actually looks positive.

But now the cumulative delta, that is the summed up delta, is relatively negative. So what does that mean here? The delta for the entire day is shown, summed up representing all the transactions generated throughout the whole day. And the delta for the corresponding candlestick I always have displayed up here. And now you can see, for example, that nearly -700 contracts were traded in this time frame. So how does that help me now? First of all, it simply helps me to have this information for that period. There was a selling surplus here. The next thing I need to know is if I have a trading product, what are the key figures that are actually meaningful? What I mean by that is at what point does it become extreme? When is there a very strong selling surplus or when is it very strong in the other direction, a buying surplus? That means I also have to take a closer look at the product in which I am considering the cumulative delta and examine it a bit more closely. In plain terms, this means that, for example, in crude oil, a cumulative delta of plus 500 might be extremely high. But in, let's just pick any market, say Eurostox, a cumulative delta of 500 could be completely normal. What am I trying to say with this? It is absolutely essential to always engage with the markets to know which ones have what kind of trading volumes and and from what point something should be considered extreme. And when something is simply normal. That means you can't standardize this for every market. You can't just use the same values everywhere. Instead, you need to know the specific metrics. Let's take a look at a few examples together. For example, you can read this quite well here, that in this candle here we had an extremely strong selling pressure of 4801 contracts. This was the Eurostox at yesterday's market open. And yes, you can already see that a lot was sold at the market open. That's information I don't get from a regular candlestick. How significant is it really to consider the weighting of these sales? Now I can already see in the next candlestick, which also drops sharply, but the delta is by far not as large anymore. That's an indication for me that shows me the pressure is easing. And now you can see very well, for example, in the next candlestick, that I have a strong buying pressure. Again, that's the basis for the whole thing. And if I'm not able to really read a footprint chart, well, then I don't know where this actually was. Was there really a buying surplus? Now? Was it present here, was it present here, or was it present everywhere equally? And that's why you always have to establish a context. What is also very, very, very important and crucial is, for example, was there a technical support level here or did this happen somewhere in the middle? Because if I also have a strong technical level here, then I know there was an exhaustion here, which means an extremum. This extremum kept flattening out and then reversed into buying pressure. So, and now it really gets interesting. Look, for example, if I was able to determine for myself that there was a big buyer present exactly at this price level, and now the next candle, and this is exactly what I'm getting at, gives me the information that there's heavy selling here, but the market doesn't go any lower down. So what does that mean for me? It means that there is a very large buyer here who is absorbing everything that's being sold. So it's an absorption, a catching of all the sale orders. And of course that significantly helps me if I was indeed able to accurately identify this particular absorption here, and also clearly recognize that even though there was very heavy selling pressure, that I can clearly and precisely identify a truly great and significant price area for myself right here, where I absolutely know for the foreseeable future, if the market indeed comes back to this specific level, I can confidently expect that a very large and influential player was actively involved here making substantial moves. And that gives me a very clear result. I'm looking for a setup here to go long again. And what do I need to do now? Now I go back in again and I look very closely. If the market comes all the way down here, there's a relatively and indeed quite high probability that cumulatively speaking, the overall delta should be viewed as very, very positive here, primarily because the numerous market participants will actively and strongly support the market at this crucial level. Then down here I can clearly see and understand, alright, this particular seller made absolutely sure that significant big money was actively buying here, precisely because for every single seller there absolutely has to be a corresponding buyer. And if the market doesn't fall any further, it's quite clear there's a buying surplus. And now the market comes down here and if I see, aha, the buyer is still there and is interested in buying again, in this price area, then I can easily enter a long trade here. And these are exactly the kinds of pieces of information where I always have to bring things together. This is a great example for me to recognize a reversal with the support of the cumulative delta. Let me take it a step further and look at the following. Here I have a sideways phase. And now I can analyze this sideways phase. And I see, okay, there was really strong selling here. Here it flattened out, a dominant buyer came in, because this number clearly tells me that it's quite a bit of dollars. But where do I locate the buyer? That's what's crucial now. And I see that the market was sold off again afterwards. And now comes the best thing that can actually happen for us. I see neutrality. So there is no more extreme value. But the market is going down. What does that tell me? To me that immediately and clearly says that this buyer here who drove the market up has a problem. And that tells me this buyer, at some point they're going to have to give up their position here. So. And that's usually the case when I can pinpoint, oh, it's still staying stable, so nothing major is happening. But at the moment, when I see right here that there is no longer strong support down here, I can see that here on the cumulative delta, it's not being strongly supported, so not being strongly bought. For me, it's very clear that the probability of the range breaking to the downside is high now. And you can also see here that the market participants have dumped some of their contracts. Nothing extreme, though. But for us, this is really great information. Once again, to maybe illustrate the whole thing a bit more simply. When supply and demand are in balance, I get a sideways phase. If I see that extreme positions have been built up in this balance, or that there was an attempt to push the market up, but it didn't work out well, then there's a very simple saying. What doesn't break out to the upside will break out to the downside. And now comes the best piece of information I have down here. For myself, I can see there are no extreme buyers present. And so the probability is high that it will just drop suddenly. And that's exactly what makes it so great for us to pinpoint with the cumulative delta. Let's take a look at another example. So in the next session, the situation we want to look at now, let's see what it means when a market has stability in its trend. To do this, I take the following approach. I look at which volumes I can identify in the corresponding time frames within this downtrend. And now I need to know which key figures are extreme and which key figures are not extreme. And if I can clearly identify that for myself, then I should always keep the following in mind. A market, when it is trending, usually ends a trend with extremes. You probably know this from volume spikes in the market and so on. And we usually see such volume spikes reflected in the cumulative delta as well. Where we see extreme selling down here, that means this number here gets really big. So what does it mean for us if it doesn't get big? If it doesn't get big, the probability is simply very high that the market will continue to fall. And only when the extreme is reached can we assume that there is now a possibility for a reversal. And even then we have to look into it again. I'd like to quickly show you this pre market. We are currently in a pre market period. That means I have to base everything on different numbers. And I can see that right here. Now, Here we've traded -923 contracts in the S and P down here. And before that we had minus 500, minus 400. And now we're at just under minus 1,000. And if I can just pinpoint that to the correct trading hours, then I already know that was something more extreme. And now I just have to see what does it look like down here now. And I can already see down here very large buyers have initially entered the market. But now I also see up here those large purchases have already been offset again.

And you can see the footprint chart gives me much more information than just the cumulative delta. Delta simply shows me whether there is stability or fragility are the candles I'm looking at right now. These ones characterized more by selling pressure or by buying pressure. And from that I build my picture. And if I then back all of this up with a smart and intelligent support resistance level, then I have an edge. And that's exactly what we like to do, what we like to use to improve our timing as much as possible.

I hope you enjoyed this. I hope this helps you further. And I am convinced that if you put in the work and really analyze all the markets in depth and and also look at the cumulative delta for the respective markets and are then able to assign them, then you have an advantage in the market and you can capture that advantage. With the cumulative delta and many other stories that are out there, you should check whether they are consistent with the things I presented to you today. Otherwise there are certainly also things that are not quite as effective. But of course, that's entirely up to you. And once again, it was a great pleasure for me to show you exactly this path. Thank you very much for listening. And it is always a pleasure for me to bring awareness into trading.