Volume Delta Methods (Chart)
By LuxAlgoAug 3, 2023
Volume Delta Methods (Chart) brings order flow onto the price chart itself, plotting the net difference between buying and selling activity alongside buy/sell volume and total volume, each drawable as line, area, or candlestick series. Layered on top, cumulative volume delta aggregates that pressure over time, showing which side has controlled an entire move rather than a single bar.
How to Trade the Volume Delta Methods (Chart)?
- Positive delta: buying pressure leads the bar; negative delta: sellers dominate it.
- Delta polarity against bar polarity: when the two disagree, a divergence prints — an early clue for reversals, or for continuation hiding beneath the surface.
- CVD direction and divergences: sustained CVD trends reveal longer-horizon conviction, and price rising against a falling CVD deserves suspicion.
- Numerical values: optional labels for reading exact delta figures.
Two estimation modes drive the numbers: Intrabar Buying/Selling Pressure infers direction from where each lower-timeframe close lands within its bar's range, while Intrabar Polarity classifies by close versus open. A volume moving average and a CVD smoothing line are available for extra context.
Volume Delta Methods (Chart) Settings
- Calculation Method: 'Intrabar Buying/Selling Pressure' or 'Intrabar Polarity'.
- Lower Timeframe Precision (default Auto): granularity of the intrabar estimate.
- Presentation toggles: Volume Delta, Cumulative Volume Delta, and Divergences on or off.
- Advanced features: Volume Moving Average and CVD Smoothing Line.
- Colors, display length, and height are adjustable per element.
Frequently Asked Questions
Which calculation method should I use?
Intrabar Buying/Selling Pressure credits volume to the side each lower-timeframe close leans toward within its range; Intrabar Polarity simply compares close against open. Both fall back to the change from the previous close when a bar is perfectly balanced, so try each and keep the one that matches your read of aggression.
What pairs well with this tool?
EquiVolume scales bar width by traded volume, making activity part of the price bars themselves — a natural companion when delta and price are telling different stories.
How can I access Volume Delta Methods (Chart)?
Access is free via the LuxAlgo Library, with the option to run it in Quant, LuxAlgo's AI, directly from this page.
Free indicator
Get free access to this indicator on the platforms below.
The Library is free. Quant makes it yours.
Pull any concept or indicator into Quant: rebuild it, retune it, or turn it into a backtested strategy of your own.
.png&w=1200&q=75)