Why I Use Volume Delta for Trading
The crypto market is notorious for being manipulated, and relying solely on candlestick patterns like bullish or bearish engulfing candles can often lead to false signals. I used to make confirmation entries based on these patterns, but my perspective shifted when I realized how easily they can be influenced.
That’s when I started focusing on **volume delta**. Volume delta measures the difference between buying and selling volume, giving insight into whether the market’s momentum is genuinely supported by traders or if it’s just a trap.
Now, when I see an engulfing candle, I don’t trust it blindly. I look at the volume delta to verify the move. If there’s no significant buying or selling pressure behind the candle, I know it’s likely a false signal, and I avoid entering the trade.
For me, volume delta adds an extra layer of confirmation and reduces the chances of getting caught in manipulated moves. It’s all about combining price action with real volume data to make smarter trading decisions.
What’s your go-to method for confirmations?
