Delta and cumulative delta

What is delta and cumulative delta?

Delta is the difference between market buys and retail sales at each price, in each candle or bar.

The cumulative delta is the accumulative delta over a certain period of time. It displays the full dynamics of the balance of market buying and selling, starting from a certain point in time, and not just in one candle or bar.

A market order is an immediate order to open or close a position to buy or sell at the current market price.

Calculation of the delta takes place according to market, or as they say, "aggressive" orders, since it is market orders that move the price in the market.

If the delta changes in a positive direction, and the price does not rise, this indicates the presence of a major limit seller. It is because of him that the price cannot go up. Or vice versa – a negative delta and a stable price indicate that there is a major limit buyer.

If we talk about the definition of a limit order, this is an order to buy or sell at a given price, which falls into the order book. The order will be executed when the market price reaches the limit price (or better price) you specified. Such orders can be used to buy or sell an asset at a lower or higher price than the current market price