Transcription
Do you know what actually moves the market? Is it trends? Is it support or resistance? Is it momentum? No. What actually moves the market is simply buying and selling. Every time there is a buy, the market is pushed up. Every time there is a sell, the market is pushed down.
The problem is, how do we as traders forecast and predict this activity accurately? You might have heard of cumulative delta before, which shows the difference between aggressive buys and sellers, but it lacks the ability to react quickly to price changes. What we've done is given you, the trader, the power to identify the exact moment when buyers or sellers are slipping up and identify the exact bottoms and tops of the markets. So, that's why we at ChartPrime have created the trend reset cumulative delta indicator.
Once loaded on your chart, you'll notice a few key things. Firstly, let's start at the bottom, the oscillator. Normal cumulative delta keeps adding buy and sell pressure over a long period. The problem is that old buying and selling can still affect the reading, even though the market has moved into a completely new trend. So, here we see during a downtrend our oscillator is purple. This in itself is a good time to sell. We entered a short and rode the market down. But, notice this arrow. This arrow shows us where an unusually extreme cumulative delta event happened. [music] This could be a reversal signal. Notice how the market then bounces shortly [music] after. We can see these arrows also on our main chart and price action along with the identified trends.
Let's look at another example. Here, the market was in a downtrend [music] and we are waiting for a long position. We see on our main chart our trend following line turns bullish and then our cumulative delta oscillator turns bullish, too. This confluence is a huge buy signal and shows we should enter the market. We enter a long, then the market shoots upwards making us a ton of gains. Again, as part of the system, it's vital to wait for confluence and agreement between our trend identifier on the chart and the oscillator itself.
For ChartPrime Pro users, you of course have our trend assistant, giving you instant, low-lag trend-following signals. If you don't like trading manually, but love these setups, you can run the exact same configurations shown in this video and enter trades automatically for free right now. Just click the link below this video.
But, back to our indicator here. For traders that prefer a faster oscillator, such as scalpers, the base EMA length can be reduced. And for swing traders, this can be increased. Analyzing differences between buying and selling in the market can give us insights into market psychology and let us get earlier into moves. So, if you want to use this indicator 100% free, search for trend reset cumulative delta indicator and use this one by ChartPrime. And if you want more free indicators like this, don't forget to subscribe and join our Discord. >> [music]