 Hello everybody, good evening and welcome to the weekly meeting with this webinar. Today we will be talking about some more applications of delta volume, so it will be a natural like going on with wealth telling last time. Please just take a look at our disclaimer. So basically the material providers for information purposes only should not be considered as investment advice. Let me just quickly remind you before we get started the promotion on by volumetric or trading in collaboration with TickMail, which basically allows you to get a special price for Volsys platform for those who are TickMail customers already. Of course terms and conditions apply and for those of you who are not yet TickMail already, you can still request a free trial of the Volsys platform getting in touch with volumetric trading team at the volumetric trading website by just filling this form. Okay, so you can still request a demo of the platform. Okay, great. So another quick reminder, of course, let me just show you my contact just in case you want to make me some questions about topics discussed during the webinars. I am one of the official trainer at volumetric trading. This is my email address if you want to ask some questions, just feel free to email me. So let's get started with the topic today. And today we will be talking about a very nice tool provided by volumetric trading and which is an additional plugin of the Volsys platform, which is called the Vol Analyzer plugin. What this tool is for? Actually, it is something that helps us reading the delta. So last time we are talking about what the delta as a concept is, what it does express in terms of volume analysis. This tool, it is something that helps us reading the delta, the ongoing delta, along with the market trading. So according to some information provided by these indicators, we can use it as confirmation for our analysis. And in some cases, it can still work as a decisional tool. So it helps us according to some information we will be talking about today, making decisions in terms of intraday and volume trading in general. So let me just quickly introduce this tool and its main functions, because it is divided into two main sections, which actually those sections are expressed into different indicators. Let's get, let's start from this chart, which is the main chart we were looking at over the last two times, over the last two webinars. If we open by right clicking here on the chart, the option indicators, we have a vault swing indicator, which is actually the first part of the vault analyzer tool. What is this indicator for? It is actually the indicator you can see here at the bottom part of my screen, this one. Okay, as you can see, we have some Instagrams. Okay, each Instagram has basically some color inside. And it shows, of course, the some informations over the time axis. Okay, so what does it actually show us in terms of volume informations? It shows us, first of all, the total volume in terms of swing. Okay, it all starts from another indicator and that native indicator, which is the zigzag. Let me just quickly show you, because I've just made here, I've decided not to have it shown on the chart. Here it is. Okay, as you can see, every swing we see here on the chart, it is tracked by a plain ordinary zigzag indicator, which is a built-in tool in the interval swing indicator. Basically, what this zigzag does is identifying a swing high and a swing low. Okay, and what happens when a swing high or a swing low is identified? The indicator takes tracks, basically, all of the amount of delta and total volume traded from a specific swing low to a specific swing high. So in this sense, we have some available information according related to that swing. So what the indicator does is basically showing here on the building on Instagram, the height of the Instagram shows the total volume exchanged during that swing, over that, within that swing. And as you can see, there is this rectangle is filled with a green color here, for this example. This color would express the delta value related to that swing. Okay, of course, if the color inside the rectangle is green, that would mean that within that swing, the majority of the delta traded is, of course, buying delta. There is a dominant delta within that swing. Of course, the height of the color here within the indicator shows the relation of that delta compared to the total volume. Let's make an example. Let's assume total volume for this swing. And of course, you can easily check any of this rectangle, which swings refer to, because you can easily project the sides of the rectangle to the chart. And as you can see, it would exactly correspond to the swing high and swing low. So basically, the top the two, both edges of the swing. And of course, so you would know already that this rectangle refers to this swing. Let's assume in this swing, we have a total volume of 10,000 lots traded. Okay, so it would measure here, you can see on the Y axis, it would express a specific volume like here, we have 21,000. Not really, not that much actually. Let me let me be accurate. 20,796 lots traded over the swing. Okay, you can easily read the volume of the Y axis on the side. Why only a small part? Well, not actually such a small part, but not why not is not the entire rectangle filled in with green color. Because of course, delta has to be less than the total volume. Total volume, as we were saying at the last webinar, would express the total volume exchanges. So it doesn't matter whether it's buying or selling volume. Delta, of course, it is the difference between aggressive buying and aggressive selling over referred to that entire swing. So of course, the amount of the area of the rectangle, which is filled by the green color, it shows how the delta is relevant or less relevant in relation to the total volume exchange during that swing. Okay, of course, that comes with two different representations because you can either have, like in this example, of course, if we have a strong green color, then would mean, of course, we have an intense delta value compared to the total volume of that swing. If we have, for example, a lighter green like it happened here over this swing, of course, that would mean we have a lower delta value for that swing. That would easily give us a clue, an idea of how powerful a specific swing is. So of course, if we have a strong green color over an upward swing, that of course would mean that over that swing, we have had lots of delta, so lots of buying pressure, which of course has given an influence to the total delta for that swing. Of course, what is very important with this kind of representation is the level where the swing has ended. Because as you can see, do you remember what we were saying at our first webinar about volume? Why is volume important? Volume shows us when it is actually, when price moves are actually accompanied by volume and delta, so by volume and by power of that move. So of course, what we need to pay attention to is what happens next. So here, a strong up move with quite strong delta, so here delta and volume were actually accompanied by price, but what happened next? Price didn't follow through. Okay, so we can use this information to track a change of behavior in terms of volume traded. And specifically, we can tell already by asking ourselves a question, we had all of this volume here pushing the price higher. Why didn't the price actually move higher? We can assume here there was a change of behavior. So for instance, where did all of those long traders go afterwards? All the full analysis gives us two chances. They got either absorbed, either they got exhausted. So basically, we have two main possibilities in terms of volume exchange. And that introduces us to the first two order flow events. We will be talking about over the next two webinars, which are absorption of the flow event number one, and then exhaustion, which is the order flow event number two. Basically, those two order flow events, which are the main ones in terms of change or changes of behavior in terms of volume, what's the difference between those two order flow events? Normally, we tend to have absorption. Every time we spot, like in this case, lots of volume pushing the price higher, but then price doesn't move accordingly to the volume traded. So we can assume that all of that volume was overcome by the opposite power. So we can tell here there might be an absorption of buyers by sellers, because we can see lots of volume here, which actually didn't have a proper follow-through. This information is given at first place from this indicator to us, and of course, that gives us the area when that first happened. So if we can spot this place as a potential absorption area, then what we can do is tracking this area as a potential reversal zone upon its pullback. Okay, so this is a very easy, but proficient way of using this indicator. Every time we see a change of behavior in terms of market participant, so when volume was trading a certain way, but price then didn't move accordingly to that way, the way volume was trading, that would normally happen in a zone which needs to be validated afterwards, but still it is a zone where something happened. So it is a zone we need to keep, we need to attention afterwards. Okay, and of course, what, it didn't happen right here, but what do we need to pay attention to if price after creating this area would eventually come back here. Here, what do you want to see? We want to see a buyer activity much lower than the previous buying activity on that level. Okay, so basically what we need to see, it is exhaustion. We take on all the events I was talking about a few minutes ago. Exhaustion is for some aspects something quite opposite than absorption. During exhaustion, we have not that much volume going on, not that much power being put in pressure into the market. So unlike absorption, where we have high volume, not pushing price further, during exhaustion, we have just lack of buyers in terms of selling exhaustion, or otherwise a lack of sellers when we have a buyer buying exhaustion. Okay, so ideally the easiest use we can make of it is indicator is putting the both events in sequence and looking for absorption at first and then getting a confirmation by with exhaustion. We can see some example, let me just go back in the chart so we can spot maybe something more, something easier, something easier to have a look at. For example, that was, yeah, that was the case. Let me just adjust. Let me just look for a better example. This is perfect. This is perfect. Yeah, as you can see, we have here a few bullish swings. Okay, and of course, those are represented by the related rectangle showing those swing, its volume and its delta. Okay, we have, of course, over a downtrend, we had the price moving in downtrend, price was moving higher, lower. We had a retracement here. This retracement was made on such a relevant volume, relevant delta, of course, it wasn't that great, but of course, it was quite relevant in terms of delta. As you can see, price went on moving in the direction of its original trend. Okay, but with not that much of a volume than we had previously, while price was moving lower. So of course, that means that sellers, sorry, volume not really sellers, volume in terms of total volume has run out, has run out a little bit. What we had when this previous low was taken out was just a higher pressure. You can see delta was much more powerful than in the previous swing low. Okay, but volume was much more or less. So that could indicate that actually looking for a breakout trading wasn't that great idea. Because of course, we want to always see for a continuation bigger volume and stronger delta, both of them. Okay, then what happens when price pulls back on the previous retracement with this kind of delta and this kind of volume? There's still quite some buying power, but you can notice it's quite less than in the previous swing high. So that would be ideally a confirmation that price is not that strong as we might have expected here at the bottom, where maybe we could have used this information in terms of run out volume to maybe playing a fake out over the previous swing low. Because of course, we see that volume is not really accompanying the move. But then we can see that the price cannot take out the previous swing high and that all happens with reduced volume, reduced delta. Okay, this is a specific use we can make of this indicator to have additional elements to conduct volume analysis. Okay, another user we can view is spotting divergences, volume divergences to be even more accurate delta divergences. You can see here we have a swing going downwards, this one, which of course would correspond to this rectangle of the vol analyzer. Okay, so of course volume volume rectangle is plotted below the midline and it comes with green delta. So that would mean that of course within this swing the majority of delta traded was buying delta. But how is that possible considering it is a swing going down? Apparently within this swing the majority of pressure was in the buying side. But still, the price can still move lower in such situations because getting back to the concept we were saying at the last webinar last week, it is quite normal. We can have lots of buying pressure hitting the ask side of the order book. So lifting the offer basically. But if there are more passive sellers of course price wouldn't move higher. So in such situation we have delta divergences. That means price moves downwards but with a positive delta. This is of course an evidence of what the price is moving downwards but it encounters already some responsive buyers. So as as price moves down there are some some buying buyers entering the market but they still can't move price higher. That means that price is slowly building resistances as it moves down. That might be an early sign for buying but actually what the divergence delta shows is exactly the opposite because despite there are many traders buying market can move higher. Can't recall the previous loss and trade above it. Okay, so this is another evidence this indicator can give us. And then another very interesting function is given by the second part of the indicator. Actually it's main, it's other series of functionalities which is called I have plotted that function only in the trigger chart. So basically the one here in the I have in the in the order flow chart we will be talking about from next time on. Among indicators there is of course yeah vault swing here as well showing exactly the same things but of course based on a shorter shorter term zigzag. So I have smaller swings to be represented here in the indicator. The other indicator is the vault swing. Sorry vault signal this one. Okay, what is this indicator for actually? It would give us, it would read the order flow for us. As I was as earlier I was talking about exhaustion, absorption. This indicator would just recognize this situation for us and would plot some symbols here on the chart to help us telling us look at there there is an absorption. Here there is a pressure and so on. Let me just quickly introduce you all of these features. As you notice there are two categories of arrows, orange ones and yellow ones. Okay, those both show two different form of exhaustion. The first the yellow one would show this low down. So basically how can you read this information? For example here actually I like this one more than the previous one. There is a knob arrow. Since we know that the yellow color would show a slow down it means that this is a bullish slow down. That means that on a bullish bar at the lower side of a bullish bar sellers have slowed down. Okay, so they slowly stopped selling and thus led the price to move higher and the bar to close as a bullish one. Something similar is represented by the orange arrow. The only difference is that we show on exhaustion. The difference between slow down and exhaustion is that the slow down is something more happening more gradually. Okay, exhaustion is just a buyer suddenly stopped buying or seller suddenly stopped selling. Okay, of course the arrow on itself has to be put in the right context. Okay, for instance I would definitely I do actually I give great consideration to this bar to these arrows when they come in conjunction with some other informations on the overflow. Like for example, can you see here we will be talking better about this concept next time but can you see here there were lots of red but actually there was lots of red inside this candle but actually the candle closed as a bullish one. I also have a confirmation of what is happening so that actually sellers are struggling to move the price lower. I have this confirmation given by also sellers stopping their selling activity. This is a strong a very strong confirmation of a possible up move. Okay, so this is one of the functions. Another function is giving still given by the wall signal indicator indicating us pressure. You can see here there is a P marking this green line that means over this level as we have a buying pressure happening taking place. Okay, we know it is a buying pressure because the line is green. Okay, when we have selling pressure we would have let me just check if if there is one. Sorry, sorry, just partly there. Yeah, here it is. Here we have a red line with still the P sign that means here we add a selling pressure taking place. Okay, same things is for the absorption indicator which is expressed not by a continuous line but by a dotted line. Sorry, a dashed line like this one. Let me just, yeah, like this one. Here we have a dashed dream line with an A. That means A stands for absorption. Of course, the line is green because that means it is an absorption of buyers. So buyers were absorbed by sellers and that gives us the reading of this dynamic which happened over three bars. So that means the line shows here because the last three bars as expressed as shown absorption of buyers. So how we can use these informations as possible inflection point as possible reaction points to be validated on the pullback of those line. So this is a dynamic reading of the order flow given by the indicator so very easy to spot of the chart. Very easy to be remembered and very easy to be validated because we have the line being plotted on the chart. So all we can do is just check how the price behaves when it comes back over that line and of course if we know what that order flow event they show we know how to make our decisions in terms of trading the order flow down the line order flow. Okay, so I guess I've said everything at least the most important features of this of this plugin indicator. Of course if you have some questions feel free to ask me here or otherwise at my email address let me just write down for you in the public chat the link you can you can go if you want to have either a trial of the Valsys platform you can email info at volumetricatrading.com or otherwise if you are a tick milk customer already you can have the Valsys platform for a special price going at volumetricatrading.com slash it slash Valsys dash tick milk. Okay that's all for today we still have two appointments with webinars from next time on we will be talking about the footprint chart and we will go on with the order flow concepts we have already talked a little bit already today. Okay that's all thank you so much for your attention I wish you a good evening and a good trading.