Delta Volume Analysis

1.3 Delta Volume Analysis: Understanding Market Sentiment

Insiderdepth’s delta volume analysis is a powerful feature that provides deep insights into market sentiment by calculating the net difference between buying and selling pressure. Delta volume is defined as the difference between the volume of buy orders and sell orders over a given period, offering a clear picture of whether buyers or sellers are dominating the market. On the platform, this metric is visualized directly beneath the main price chart, with green bars representing net buying pressure (positive delta) and red bars indicating net selling pressure (negative delta). Insiderdepth aggregates delta volume data both market-wide and from individual exchanges, providing a dual perspective that enhances its utility. For example, a trader might observe a sustained positive delta on Binance Spot alongside a flat price trend, suggesting potential accumulation by large players.

This feature is particularly valuable for identifying early signals of market momentum, as shifts in delta volume often precede significant price movements, giving users a strategic advantage in timing their trades.