Chart of Nifty future
In the trading room we monitor the buying selling of the market through Delta charts.
An example of the chart is above.
The price is reflected through a PnF chart with a volume pane below and the delta chart at the bottom.
The delta is the net difference between buying and selling volumes and is a useful barometer to the kind of new buying or selling coming into the market.
In the chart above, we would monitor the Delta through 4 color indicator lines which would be pink, red, green and blue.
The Blue and the red are a set and represent the highs and the lows of the trading day ( previous)
The green and the pink would represent the highs and the lows of the first hour or Initial Balance.
As can be seen in the chart above, new selling came into the market once the pink IB line broke.
The same can be confirmed in the BankNifty chart below, where a break of IB confirmed new selling in the market.