Delta Volume X-Ray

The Delta Volume X-Ray indicator is a comprehensive volume and momentum analysis tool designed to provide a structured interpretation of market participation. It integrates delta-style pressure estimation, divergence detection, and institutional activity tracking to help traders identify high-probability market environments.

Usage

The Usage section highlights how to interpret the various analytical layers provided by the script. Traders can use the Delta Pressure Engine to see whether buyers or sellers are exerting more relative force within each candle. The tool is particularly effective for identifying "Absorption," where high volume occurs with limited price movement, suggesting institutional positioning.

Examples of usage include:

• Trend Confirmation: Use the Delta Momentum Oscillator (MACD-style) to confirm the strength of an ongoing trend.
• Exhaustion Identification: Watch for Volume Climax signals (cyan or purple bars) which often mark the end of a trend or a sharp breakout phase.
• Reversal Detection: Monitor the Divergence engine for discrepancies between price structure and delta volume, which can signal a weakening of the current move.

Details

The script operates on the philosophy that volume must be interpreted in relation to price structure. It calculates a delta-style approximation by measuring candle bodies relative to their total range and weighing that by volume. This data is then processed through smoothing functions and an RSI-style calculation applied to the delta data itself, rather than price. This allows the system to measure the sustainability of participation pressure. The tool also features a "DVX Confluence Scoring Model" that aggregates multiple conditions into a single classification (from Extreme Buy to Extreme Sell) for rapid assessment.

Settings

Core Delta Volume

• Delta Smoothing: Adjusts the responsiveness of the volume bars.
• Show Delta Volume Bars: Toggles the visibility of the primary volume columns.
• Show Cumulative Delta Line: Displays the running total of delta volume over time.

Buy / Sell Signals

• Show Buy/Sell Signals on Chart: Enables visual execution markers based on EMA and score confluence.
• Fast/Slow EMA: Configures the period for the trend confirmation cloud.
• Min/Max Score for Signal: Sets the threshold for the Speedometer score required to trigger a signal.

Smart Money & Squeeze

• Show Absorption Zones: Highlights areas where large volume is absorbed by opposing liquidity.
• Show Volume Climax: Marks candles with volume significantly above the average.
• Squeeze Length/Multiplier: Controls the sensitivity of the volume contraction (squeeze) detection.

FAQ

How do I interpret the HUD Dashboard? The HUD provides a real-time glance at delta streaks, buy/sell percentages, and the composite speedometer score to determine the current market bias.

Can I set alerts for specific volume conditions? Yes, the script includes alert functionality for High Volume Absorption, Volume Climax, Divergence, and Squeeze expansions.

How do I get access to Delta Volume X-Ray? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.