Delta Volume Signals

The Delta Volume Signals indicator provides a comprehensive look at intra-candle buying and selling pressure by calculating volume delta based on price action within each bar. This tool is designed to help traders identify the dominant market force (buyers vs. sellers) and find high-probability trend entries using volume-confirmed moving average crossovers.

Usage

The indicator can be used to gauge market sentiment and find trend reversal or continuation signals:

• Order Flow Analysis: Use the on-chart table to see real-time Buy vs. Sell volume percentages and the net "Delta Volume Force."
• Trend Signals: Look for the triangle shapes on the chart which indicate an EMA crossover. If "Volume Confirmation" is enabled, these signals only appear when the volume supports the direction of the crossover.
• Volume Candles: When enabled, the indicator colors the candles based on whether buying or selling volume was dominant, providing a visual representation of order flow directly on the price action.
• Delta SMA: The indicator calculates a Simple Moving Average of the buy/sell percentages to show the average sentiment over a specific period, helping filter out short-term noise.

Details

The script calculates "Buy Volume" and "Sell Volume" by analyzing the relationship between the candle's close, high, and low. It assumes that volume associated with price action near the high is buying pressure, while volume near the low is selling pressure. Key implementation features include:

• EMA Crossovers: Uses a fast and slow EMA to define the current trend direction.
• Volume Confirmation: A proprietary logic that sums volume over a specific lookback period to ensure the trend is backed by significant participation.
• Visual Ribbon: A multi-layered EMA ribbon provides a visual sense of trend strength and volatility.

Settings

• Volume on Candles: Toggles the volume-based coloring and internal "filling" of the price candles.
• Style: Allows customization of the primary Buy and Sell colors used throughout the table and plots.
• Signals: Customize the colors of the Buy (Up) and Sell (Down) triangle shapes.
• EMA Settings: Adjust the Fast and Slow EMA lengths, and toggle the EMA ribbon visibility.
• Volume Option: Choose between "none" or "Use Volume Confirmation" to filter EMA signals based on volume participation.
• SMA Length: Sets the lookback period for the moving average of Buy/Sell percentages shown in the table.

FAQ

• How do I interpret the Δ Volume Force in the table? The Delta Volume Force shows the difference between buying and selling volume. A positive (green) delta indicates buyer dominance, while a negative (red) delta indicates seller dominance.
• What does the Volume Confirmation do? It ensures that signals are only generated when the majority of volume over the recent period aligns with the direction of the EMA crossover, reducing "fakeouts" in low-liquidity environments.
• How can I access Delta Volume Signals? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.