Educational LTF -> HTF volume delta

The Educational LTF -> HTF volume delta indicator calculates and visualizes volume distribution by aggregating lower timeframe (LTF) data into the current chart's higher timeframe (HTF) bars. This tool allows traders to identify internal buying and selling pressure within a single candle, providing a more granular view of market activity.

Usage

The tool can be used to identify who is in control of the market at any given moment by breaking down the total volume into its constituent parts: Buy, Sell, and Neutral.

• Stack Mode: Displays buy and sell volumes stacked on top of each other, allowing for a quick comparison of the total volume composition.
• Split Mode: Separates buy and sell volumes into positive and negative territory, making it easier to see the delta and identifying specific volume spikes relative to an EMA.
• Mixed Histograms/Columns: These modes provide alternative visual cues by plotting one volume type as a solid column and the other as a thin histogram, emphasizing the dominance of one over the other.

Traders can use this data to spot absorption, where high volume occurs without significant price movement, or to confirm the strength of a breakout with high buy or sell volume.

Details

The script utilizes the request.security_lower_tf function to fetch data from a specified lower timeframe. For each bar on the current timeframe, it iterates through all LTF bars and categorizes their volume based on the bar's polarity (close vs. open):

• Positive Delta (Buy): LTF close > LTF open.
• Negative Delta (Sell): LTF close < LTF open.
• Neutral: LTF close == LTF open.

This method provides a more accurate representation of volume distribution than simple price action on the current timeframe, as it looks "inside" the candle to see the underlying transactions.

Settings

Settings & Inputs

• Lower Timeframe: The timeframe from which the indicator pulls granular volume data (e.g., 1-minute data for a 15-minute chart).
• Appearance: Selects the visual style of the indicator (stack, split, or various histogram/column combinations).
• Length: Determines the period of the Exponential Moving Average (EMA) used to smooth volume data when using the "split" appearance mode.

FAQ

How do I access Educational LTF -> HTF volume delta?

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

What is the advantage of using LTF data?

Using LTF data allows you to see the intra-bar movement. For example, a single daily candle might look bullish, but LTF data could reveal that most of the volume was actually sell-side pressure that was eventually absorbed.

Why does the indicator show neutral volume?

Neutral volume occurs when the lower timeframe bars close exactly at the same price they opened. While rare in high-liquidity markets, it represents volume that cannot be clearly attributed to aggressive buying or selling.