It is better to monitor the bar cluster in a day chart on a big screen – the level of detail is very high.
October 23 – the volume moves upward and the delta is positive – attributes of buyers’ appearance.
October 24 – bar closing is above the closing and maximum volume of the previous day, but the volume and delta are lower. Buyers try to increase the pressure.
October 25 – the maximum volume of trading takes place at the level of the maximum volume of trading on October 24 despite the closing above the previous day’s one – you should be on the alert and wait for the next day.
October 28 – the market is balanced and ready to start a new focused movement – the bell shape of the bar testifies to it.
October 29 – the closing is below the closing and maximum volume level of the previous day and the delta is negative. Sellers absorbed all buyers and nervous sellers, who closed their positions. The market would move from the middle of the balanced area of 66.73. Probability of the price fall is higher than its growth, since the closing is below this level.
Let us consider this situation at a different angle.
The chart shows the vertical volume of the current WTI oil contract (CLF9), delta, cumulative delta and horizontal volume in candles. The chart gives a general understanding of the situation with the WTI oil prices for the past 1.5 months. Price reduction is confirmed by increase of the horizontal volume and fall of the cumulative delta. Short periods of price bounce are the periods of absorption of sellers. The market reaches a balance during these periods of time and then continues a focused movement.