Delta order flow.

What is Delta order flow?

Firstly the term delta was introduced in trading in the year 2002 together with the footprint charts.
But especially at that time it was still very difficult as a trader to get the real time data, which was mainly devoted to a small selective group on the market.
But fortunately, today it is a lot easier to use the real-time data that we mainly need to trade with Order Flow.
And this information can help us as retail traders get a lot closer to the professional level.

Delta order flow is the difference between the market buys and market sells at each price (Footprint Delta) in each candle/bar (Bar Delta) or for a period of time (Cumulative Delta).
So if delta is greater than 0 you have more buying than selling pressure.
If delta is less than 0, you have more selling than buying pressure.
So Delta is calculated through subtraction of the volume of contracts traded at the Bid price from the volume of contracts traded at the Ask price.


To calculate the delta we need the following variables:

  • The bid price
  • The ask prive
  • The most recent price at which the instrument was traded.
  • The volume of the most recent trade.
  • The time of its execution.

But remember that the delta is calculated by the difference of the volume of the market buys and the market sells.
So the Delta calculation by market, or as they say aggressive, orders is explained by the fact that namely market orders move the price in the market.

Delta order flow

As most of you already know, there are different types of Delta that you can use, although they all come down to the same thing.
We can also use the Delta in various ways in our trading as extra confirmation.

But the true power delta is revealed when we use it to determine the market’s reaction to powerful buying or selling.
So we want to see if the market has reacted as we would expect or not.
I also explain all this in my Order Flow course.

Where can I find the Delta?

You can find Delta order flow on different platforms.
So I’ll list a few for you here.

Sierra Charts.
Lightweight platform you can go in many directions with it and it is one of the cheaper platforms.

Ninja Trader.
Lots of free choice but even more choice under their paid platform.

MT4/MT5
And for MT4/MT5 there are also several indicators, sometimes by external parties.

These are a few examples.
And there are probably many more to be found.

Conclusion Delta order flow.

If I give my personal opinion about the Delta order flow, the Delta is perhaps one of the best indicators that you can use in Order flow trading.
It can give you a good indication of where you are in the market and who is in control at the moment.
The buyers or the sellers.
It gives you a good insight into the buying and selling pressure and how the market reacts to it.
So my advice is therefore to definitely use delta when trading with the footprint charts or trading with supply and demand just before the extra confirmation.

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Or want to know more about Delta order flow?

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