Cumulative Delta & Quantum Vol-Delta – A solid setup from a Pro trader

“Regarding the Cumulative Delta indicator, I have noticed some lines that appear on the chart, but I do not know what they are marking or indicating.  If they are marking supply/demand levels or support/resistance levels, then there would be far more of them, so I am wondering what their significance is.

In order to get the lines on a new chart so they would appear without having any other indicators so only the lines would appear, I used a 2 second chart because even a 1-minute chart could take hours.

These lines come from the Cumulative Delta indicator as it is the only one I have on the chart, and I think are the ones labeled “Price Action: Local Top and Price Action: Local Bottom.

These are the only inputs I think could be doing this, so I was wondering what their significance is and how are they to be used.  Attached is a chart showing the lines.“

Let me explain their meaning clearly:

1. When a BUY signal appears

If later a SELL signal appears, but price moves above (breaks) the high of the previous BUY signal,
then a new BUY signal will appear.

The horizontal line you see is drawn to mark that previous high, so you can easily confirm when price breaks it.

2. When a SELL signal appears

If later a BUY signal appears, but price moves below (breaks) the low of the previous SELL signal,
then a new SELL signal will appear.

The line marks that previous low, helping you see when price breaks it.

Purpose of these lines

They are not supply/demand levels and not support/resistance levels.

They simply act as price-action reference levels that the indicator uses to decide when a new BUY
or SELL signal should be generated after price breaks a previous signal’s structure.

If you’d like, you can send me your screenshot again and I can highlight everything directly on it for you.

“Thank you. That explanation makes sense.  I understand it now. I do really like both the Quantum Vol-Delta & Cumulative Delta indicators.  They are also good at spotting potential turning points as well as showing divergence.  

I am still doing simulated trading but last week I did just 8 trades, but all were winners. ” 

He focuses on the NY session, aiming for scalp and intraday trades with high-probability setups. His approach blends time-based charts with King Renko charts to confirm signals and filter noise.

1. Chart Setup

He currently uses four charts and is still refining his final layout:

• Time charts:
  • 5-minute
  • 2-minute
• King Renko charts:
  • 12/4
  • 15/5
    → He said: “I have found that using the combination of the 5-minute and 2-minute in conjunction with and confirmation for signals on the King Renko charts 12/4 and 15/5 really help me find solid setups.“

2. Core Indicators

He combines system signals with delta-based tools:

• Solar Wave → on time-based charts
• ThunderZilla → on King Renko charts
• Quantum Vol-Delta + Cumulative Delta → on both chart types
• Special focus on Delta reversal bars, which he mentions as a “great entry points allowing for small to reasonable sized stops with fair and easy to reach targets.“

3. Trading Method

• Looks for high-probability setups only
• Prefers scalps with manageable stop losses
• Regularly trades 4 hours per day, 5 days a week
• Target: 5–6 points per day → enough to earn 1%+ daily

4. Risk Management & Position Sizing

He uses a very systematic contract-sizing model:

• 1 contract per $2000 of account balance
• Example:
  • $6000 → 3 contracts
  • $8000 → 4 contracts
  • If equity drops below $6000 → reduce to 2 contracts

Stops:

• Generally 10–15 points
• Sometimes uses strict 1:1 R:R, but prefers a bit more wiggle room to increase win rate

His sharing about a real example – when a late entry turns risky:

“I did 2 trades this morning and both winners, though the 2nd trade was a higher risk but paid off. I got in later then I should have so required more room but paid off. This is the danger though when jumping in late on a missed signal. It increases risk.“

5. Trade Discipline

• Biggest challenge: patience
• Avoids jumping in late – missing the planned entry increases risk
• Emphasis on sticking to rules, waiting for the proper signals and conditions.

6. Performance Snapshot

• First 10 trades: 100% win rate
• Total gain: +12.84% in the first week
• Acknowledges it may be a lucky streak, but overall results show strong potential if you could maintain discipline.