Definition
Delta volume is an order-flow-based metric that quantifies the net imbalance between executed buy and sell volume within a specified time frame or price range. It is typically defined as aggressive buy volume minus aggressive sell volume, where aggressiveness is determined by which side initiates the trade against the resting liquidity. A positive delta volume indicates that buying pressure dominated, while a negative value indicates that selling pressure dominated.
In crypto markets, delta volume is often derived from trade data at the tick, footprint, or order book level, and is closely associated with tools that visualize cumulative or per-bar imbalances. It is conceptually related to CVD, which aggregates these net differences over time, but delta volume itself refers to the raw or interval-specific net volume. As a concept, it focuses on the directional intent of market participants as expressed through executed orders rather than just total traded volume.
Context and Usage
Delta volume is used in advanced order flow analysis to characterize whether liquidity consumption is predominantly driven by buyers lifting offers or sellers hitting bids. By isolating the net directional component of traded volume, it distinguishes between periods of balanced activity and periods where one side is clearly more aggressive. This makes it a more nuanced concept than simple volume, which does not differentiate between buying and selling pressure.
In practice, delta volume is often examined alongside CVD and other Order Flow metrics to understand how persistent net buying or selling interacts with price movement. It can be computed on different granularities, such as per candle, per price level, or per session, with each view emphasizing a different structural aspect of the market. As an advanced concept, it is primarily used in analytical frameworks that focus on microstructure and the dynamics of executed orders rather than on traditional chart-based indicators.