Delta Volume Candles

The Delta Volume Candles indicator provides an advanced on-chart visualization of volume delta using intrabar analysis to estimate buying and selling pressure. It offers a comprehensive suite of features including replacement candles, volume tops/bottoms, divergence channels, and multiple balance oscillators to help traders identify convergence between price action and volume flow.

Usage

The Usage section focuses on the interpretation of the on-chart elements and how the internal balances affect the output.

• Custom Candles: These can replace standard candles. The bodies are colored based on volume delta balances (e.g., Bar Balance or Cumulative Balance). Users can configure "hollow" candles to identify bars where volume has decreased compared to the previous bar.
• Volume Tops & Bottoms: These visual extensions represent the volume delta for a specific bar. A "top" appears when up volume exceeds down volume, while a "bottom" appears when down volume is greater. Their size is relative to either the individual candle body or a 100-bar average.
• Divergence Channel: This tool identifies regions where price and volume delta disagree. A new channel is created when price breaches the previous level and a new divergence occurs. These levels are color-coded: Bull (price breached upside), Bear (price breached downside), and Neutral.
• Balance Oscillators: The indicator calculates five internal balances (Bar, Average, Momentum, Relative, and Percent) which drive the coloring of candles, background gradients, and EMA channels.
• Information Box: A display in the bottom right corner provides data on the lower timeframe (LTF) used for intrabar analysis and the coverage statistics for the current chart.

Details

The script utilizes intrabar analysis, which is a method of looking "inside" a single chart bar by analyzing the smaller timeframes that compose it. This is more precise than standard OHLC assumptions used by indicators like Chaikin Money Flow.

The logic for determining volume polarity is as follows:

1. If the intrabar's open and close are different, their relative position determines if the volume is "up" or "down."
2. If the open and close are identical, the difference between the current and previous intrabar close is used.
3. If no price movement occurred, the last known polarity is applied.

By summing these categorized volumes, the indicator calculates the Volume Delta. Note that there is a 100,000 intrabar limit on TradingView; therefore, choosing a more precise (lower) timeframe will reduce the historical depth of the calculations on the chart.

Settings

Normal Candles

• Color bodies on: Selects the balance oscillator used to determine candle body color.
• Gradient: Enables a color gradient based on the strength of the selected balance.
• Body divergences: Highlights candles where price polarity and volume delta polarity differ.
• Empty bodies on decreasing volume: Makes candle bodies hollow if the total volume is lower than the previous bar.

Volume Tops & Bottoms

• Size relative to: Sets the baseline for scaling the tops and bottoms (Current body vs. 100-bar average).
• Display: Choose between showing both sides, only the winning side, or momentum-based plots.
• Show EMAs: Toggles Exponential Moving Averages calculated from the peaks of the tops and bottoms.

Divergence Channel

• Draw levels on: Defines which type of divergence (Body, Top/Bottom, or both) triggers a new channel.
• Fill: Toggles the background fill between the divergence levels.

Intrabars

• Calculation mode: Selects the precision vs. coverage trade-off. "Most precise" uses more intrabars but covers less historical data.
• Tolerance: Sets the percentage threshold for volume discrepancies between the chart and intrabar data before showing a warning.

FAQ

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

Why does the indicator not show data on the far left of my chart? Because the indicator uses intrabar analysis, it is subject to a 100,000-bar limit for lower timeframe data. High-precision settings will hit this limit sooner, resulting in fewer historical bars being processed.

Why do some candles have a yellow body or unique color? This typically indicates a Divergence. It occurs when the price direction (e.g., a green up-candle) does not match the volume delta balance (e.g., negative delta), signaling a potential lack of conviction in the move.