Decode The Market With Order Flow Delta Analysis
One of the comments I recently received was asking to explain the importance of Delta/Volume.
Order flow traders look for unusual surges in delta/volume to anticipate potential market-moving trades by large institutions or firms. Unusual trading activity can give you clues as to the direction big traders expect the underlying to move.
Delta/volume data combined with price action can help order flow traders understand when options activity is signaling a shift in sentiment or expectations. It provides an information edge to anticipate potential price moves.
Combining delta and volume metrics allows order flow traders to spot actionable opportunities in the options market. The delta/volume profile gives insights into price, liquidity, sentiment and trading activity.
