The best part about Aggr is it’s open source, meaning anyone can contribute to its development. The community built around the Aggr tool has built some extremely useful tools that can add value to your trading and investment strategy.
In this article, we’ll look at the delta divs indicator, how it works, and how to interpret the information it’s giving you.
Aggr Community Indicator: Delta Divs
Delta divs (delta divergences) is a volume based indicator that uses green and red arrows to mark potential reversal areas.
This indicator works by calculating the average volume based on a certain amount of candles (the default is 200 candles) and then checks if the current volume is higher than average.
An example of what the delta divs indicator looks like on the Bitcoin 15 minute chart.
The delta div indicator also looks at data points like the highest/lowest price, average volume, and the absolute volume difference ratio (imbalance between buy and sell volume) within the 200 candles.
If price makes a new high within this lookback period, the indicator checks whether the volume is above the average volume. If there is a net negative volume difference (more selling than buying) or minimal buy/sell imbalance, it will paint a red downward arrow above the candle, signalling a potential bearish reversal.
In contrast, if price makes a new low within the lookback period, the indicator checks whether the volume is above the average volume. If there is a net positive volume difference (more buying than selling) or minimal buy/sell imbalance, it will paint a green upward arrow below the candle, signalling a potential bullish reversal.
Because Aggr is open source, you can customize the lookback period, appearance and other aspects of the delta divs indicator to your liking.
You can also use the delta divs indicator to give you more context on how price is developing:
If the indicator keeps printing green arrows (indicating more buying than selling) but price continues to make lower highs, this indicates distribution.
Even if buying volume exceeds selling volume, the failure to make a new high indicates sellers are absorbing buy orders and distributing their positions.
In this scenario, you can feel confident in a short position, since buyers are unable to push the price higher.
On the other hand, watch when the indicator shows more selling than buying, but the price continues to grind higher. This suggests that sellers are being absorbed by aggressive buyers.
Delta divs is a volume based indicator so it works best in combination with key support/resistance levels. Thedelta divs signal becomes more actionable when there is confluence with a key support/resistance level.
Aggr Trade Indicator Spotlight: Delta Divs