Binance Delta and Cluster Analysis in ATAS - YouTube

Hello, everybody.

Today we will consider the footprint chart and will try to understand:

- whether it is possible to find places with a potential market reversal using Delta;

- whether the cluster analysis would help us in this question and what patterns could

be used for confirmation or negation of the reversal.

To do it, we would need the ATAS platform, M5 chart with a bitcoin futures of the Binance

crypto exchange and Delta indicator.

In case you haven’t installed the ATAS platform yet, use the link in the description.

First of all, we would analyze the historical data in the chart and find out which values

of the positive and negative Delta correspond with the extreme values at this moment.

Most probably, many of you are acquainted with the term “the buying and selling climaxes”.

Volatile candles are characteristic for climaxes.

Let’s try to apply this term to the Delta rather than to the candle volume.

A splash of the positive Delta during the upward movement will tell us about a possible

buying climax.

A splash of the negative Delta during the downward movement will tell us about the selling

climax.

Since it is an intraday chart, we will see places where a candle with a big Delta is

not very volatile.

Such candles are more characteristic for traps rather than climaxes.

However, such candles are just right for us, as they may precede a reversal.

A negative Delta, which reaches a big value, appears in the chart.

The candle is not volatile and the candle closure shows us the weakness of the aggressive

seller.

If we have a growing trend in the background, such a pattern may give us a hint about the

end of correction.

It makes sense to look for confirmation of the further development of the situation after

such a signal.

The cluster analysis will help us to find the candles, in which the aggressive buyers

have taken the situation under control or sellers are not able to control the price.

The situation in this example developed very fast and we haven’t received additional

confirmations in the M5 chart.

Further we see a buying climax in the form of a big positive Delta and upward volatile

candle.

The closure took place in the upper part of the candle near the maximum volume.

Let’s see whether there would be further confirmation in the cluster analysis.

Note the motion pattern of the current candle.

The buyer tried to continue the upward movement and the Delta increased, after which the seller

emerged and took the lead.

The seller managed to go below the maximum volume where the last fight took place.

We also see a tail in the candle - a PinBar.

It is yet another sign of strength of the aggressive seller.

Such a PinBar without a climax in the background is not that remarkable, but in our case this

candle has many signs of the seller’s strength and buyer’s weakness.

The situation is repeated in 15 minutes.

The buyer tried to take the lead but failed.

We see the upward tail on the Delta, the candle is also in the form of a PinBar and the closure

is below the volume.

Then follows the downward impulse as the result of this fight.

Then we see a new volatile candle with a big negative Delta.

The situation promises an upward reversal.

We switch to the cluster analysis and see that the seller tried to continue reduction

but the initiative has run out and the closure took place above a big cluster.

The Delta has a tail below, which means that the aggressive buyer has emerged.

The growth renewed after that and the new buying climax appears approximately in an

hour.

It is a new possibility to find patterns with the help of cluster analysis.

Pay your attention to the next: 1.

The market background is always important.

If you see a flat, you should look for such reversal patterns at the flat boundaries rather

than in the middle of the flat range.

2.

If there is a stable trend in the market, the counter-trend patterns are fraught with

high risk.

3.

Be attentive to the additional signs of weakness of buyers or sellers when analyzing every

situation.

The more signs point to the same, the higher is the probability to be right.

Thank you for watching!

Please, ask questions in the comments and we will answer the most interesting of them.

Stay tuned!