How to Build a Scalping Strategy with Delta
What if your scalping strategy could identify hidden institutional order flow before price moved? Imagine capturing 3-5 ticks per trade consistently whi...
What if your scalping strategy could identify hidden institutional order flow before price moved? Imagine capturing 3-5 ticks per trade consistently while others chase breakouts in trending markets. The key lies in understanding delta divergence—a powerful tool that reveals when market makers are building positions before price reacts. Delta Divergence is the mismatch between price movement and cumulative delta (the difference between buy and sell orders). It signals potential reversals when price makes higher highs but delta makes lower highs (or vice versa). Key fact: Scalping requires identifying price movements before they fully manifest. Delta divergence reveals institutional activity before it reflects in price, giving scalpers a critical edge in fast-moving markets. Order Flow is the real-time analysis of buy and sell order activity at each price level. It allows traders to see institutional activity before it reflects in the price. Tick Charts update based on transaction volume rather than time, providing more responsive price action during active periods. Scalpers prefer them over time-based charts because they respond to market activity, not clock time.