Delta Flow Profile
Aug 13, 2024
The Delta Flow Profile is an innovative trading indicator designed to offer traders an informative visual representation of money flow and the balance between buying and selling pressures within various price ranges over a designated timeframe. This tool is invaluable for traders as it highlights the correlation between price fluctuations and trader activities, offering insights into pivotal price levels and market dynamics.
One of the unique features of this indicator is the Normalized Profile, which provides a comparative analysis of money flow percentages at each price point relative to the highest level of money flow. This allows traders to quickly identify significant price levels and make informed trading decisions based on overall market activity.
How to Trade with Delta Flow Profile
The Delta Flow Profile comprises two main components, each serving distinct purposes. These components are detailed in the sections below.
Understanding the Money Flow Profile
The Money Flow Profile offers a comprehensive view of accumulated buying and selling activities across varying price intervals. Traders can leverage this profile to pinpoint critical zones of buying or selling pressure—often acting as potential support or resistance levels.
Organized in rows, the Money Flow Profile visualizes trading activities within specific price ranges over a selectable period.
This indicator features a normalized version, making it easier to compare zones with the highest money flow by using percentage metrics, where a 100% signifies peak money flow concentration.
Analyzing the Delta Profile
The Delta Profile is instrumental in discerning dominant market sentiment—whether bullish or bearish—by evaluating the volume delta at specific price tiers. This insight facilitates understanding market sentiment and forecasting potential reversals.
Rows indicating larger buying or selling volumes point to market dominance at that price level. Price revisiting these zones may reveal intentions from the market side showing dominance to further reinforce orders in that vicinity, potentially driving the price in the direction of the prevailing market sentiment.
The volume delta relies on the user-selected Polarity Method. The "Bar Polarity" utilizes candle sentiment to discern associated volume, and the "Bar Buying/Selling Pressure" mode employs high/low price data to achieve higher precision.
Leveraging the Level of Significance
Highlighting price levels with the most significant recorded money flow is seamless with the "Level of Significance" feature included in the indicator. It offers various display methods:
- Developing: Displays price levels with the highest cumulative money flow within the analysis interval.
- Level: Shows the singular price level with the highest money flow.
- Row: Exhibits the price zone with the peak money flow activity.
These significant levels or zones can guide traders in identifying potential support/resistance areas, serving as benchmarks for future price movements where market participants may focus their activities.
Customizing Your Delta Flow Profile
Tailor the Delta Flow Profile to suit your trading strategy with its array of customizable settings.
Fine-Tune Calculation Settings
- Money Flow Profile: Activate or deactivate the Money Flow Profile.
- Normalized: Control the display of the Normalized Profile.
- Sentiment Profile: Toggle the Sentiment Profile visibility.
- Polarity Method: Select between Bar Polarity or Bar Buying/Selling Pressure for refining the Sentiment Profile.
- Level of Significance: Show or hide the line or zone indicating significant levels.
- Lookback Length / Fixed Range: Adjust the analysis timeframe.
- Number of Rows: Define the number of rows in each profile's histogram.
Optimize Display Settings
- Profile Width %: Modify the histogram row width related to the profile length.
- Profile Horizontal Offset: Adjust the horizontal placement of profiles.
- Profile Text: Set profile text visibility and size. The "Auto" setting confines text to box limits.
- Currency: Extend profile text to display the traded currency.
- Profile Price Levels: Toggle visibility of profile price levels.
Explore More with Related Scripts
FAQ
Q: How can I access the Delta Flow Profile indicator?
A: You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.
Q: How does the Delta Flow Profile help in trading?
A: By visualizing buying and selling pressures across price ranges, the Delta Flow Profile helps identify significant zones of market activity that can act as support/resistance, aiding strategic trading decisions.
Trading is risky and many will lose money in connection with trading activities. All content on this site is not intended to, and should not be, construed as financial advice. Decisions to buy, sell, hold or trade in securities, commodities and other markets involve risk and are best made based on the advice of qualified financial professionals. Past performance does not guarantee future results.
Hypothetical or Simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, including, but not limited to, lack of liquidity. Simulated trading programs in general are designed with the benefit of hindsight, and are based on historical information. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown.
Testimonials appearing on this website may not be representative of other clients or customers and is not a guarantee of future performance or success.
As a provider of technical analysis tools for charting platforms, we do not have access to the personal trading accounts or brokerage statements of our customers. As a result, we have no reason to believe our customers perform better or worse than traders as a whole based on any content or tool we provide.
Charts used on this site are by TradingView in which the majority of our tools are built on. TradingView® is a registered trademark of TradingView, Inc. www.TradingView.com. TradingView® has no affiliation with the owner, developer, or provider of the Services described herein.
This does not represent our full Disclaimer. Please read our full disclaimer.
© 2025 LuxAlgo Global, LLC.