BTC Net Volume Delta (Spot)

The BTC Net Volume Delta (Spot) indicator calculates and aggregates the net buying and selling volume from multiple major Bitcoin spot exchanges to provide a comprehensive view of market trend momentum.

Usage

The BTC Net Volume Delta (Spot) tool is primarily used for trend analysis and identifying potential shifts in market momentum. By viewing the cumulative volume across several exchanges, traders can get a clearer picture of whether the overall market is being driven by buyers or sellers.

• Trend Following: A positive histogram (green) suggests net buying pressure, while a negative histogram (red) suggests net selling pressure.
• Momentum Shifts: Traders can look for instances where sell momentum is decreasing (red bars becoming lighter) as a potential buy signal, or where buy momentum is decreasing (green bars becoming lighter) as a potential sell signal.
• Zero-Line Crosses: When the smoothed net volume crosses above zero, it indicates a shift toward net positive spot volume. Conversely, a cross below zero indicates a shift toward net negative volume.

Details

The script fetches volume and price data from several prominent Bitcoin spot exchanges, including Binance, Bitfinex, Poloniex, Bittrex, Coinbase, Bitstamp, Kraken, HitBTC, and Gemini.

For each exchange, it determines "buy" or "sell" volume by comparing the current price to the previous price:

• If the price is greater than or equal to the previous price, the volume is considered positive (buying).
• If the price is lower than the previous price, the volume is considered negative (selling).

These values are summed across all enabled exchanges and then passed through a Simple Moving Average (SMA) to produce a smoothed histogram. This multi-exchange approach provides more consistent data than looking at a single exchange, as it mitigates the impact of localized liquidity spikes or anomalies.

Settings

Exchange Toggles

• Binance (USDT): Toggle to include or exclude volume data from Binance.
• Bitfinex (USDT): Toggle to include or exclude volume data from Bitfinex.
• Poloniex (USDT): Toggle to include or exclude volume data from Poloniex.
• Bittrex (USDT): Toggle to include or exclude volume data from Bittrex.
• Coinbase (USD): Toggle to include or exclude volume data from Coinbase.
• Bitstamp (USD): Toggle to include or exclude volume data from Bitstamp.
• Kraken (USD): Toggle to include or exclude volume data from Kraken.
• HitBTC (USD): Toggle to include or exclude volume data from HitBTC.
• Gemini (USD): Toggle to include or exclude volume data from Gemini.

Calculation

• Smoothing Length: Sets the period for the Simple Moving Average (SMA) applied to the cumulative net volume.
• Source: Determines the price source (e.g., hl2, close) used to calculate whether volume is positive or negative.

FAQ

How do I access BTC Net Volume Delta (Spot)?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.

Why use spot volume instead of futures volume?

Spot volume is often considered more consistent for long-term trend analysis as it represents the actual exchange of the underlying asset rather than speculative derivative positions.

What do the different colors in the histogram mean?

Bright green indicates positive net volume that is increasing, while dull green indicates positive net volume that is decreasing. Bright red indicates negative net volume that is increasing (getting more negative), while dull red indicates negative net volume that is decreasing.