Delta Barometer

The Delta Barometer indicator is a dual-engine institutional pressure tool that generates directional signals by combining a regime-adaptive ATR trailing stop with a cumulative delta volume crossover system. It provides a configurable framework to analyze market momentum and volume flow, allowing users to filter signals through four different hybrid modes and volatility-based arming settings.

Usage

The Usage section describes how the script can be used to identify high-probability setups through engine confluence or individual momentum shifts.

• Engine A (ATR Trail): Provides trend-following signals based on a regime-adaptive trailing stop. It qualifies flips using a Trend Strength Score (TSS) that considers RSI slope, volume rate, and ATR expansion.
• Engine B (Delta Volume): Focuses on volume flow by tracking the crossover of cumulative delta against its moving average. It uses a Pressure Score to qualify entries based on candle body size and volume magnitude.
• Hybrid Modes:
  • Both Engines: Requires confluence from both systems for the highest selectivity.
  • Priority A/B: Gives precedence to one engine while using the other to fill gaps.
  • Either Engine: Fires a signal if either system detects a valid setup, offering the highest signal frequency.
• Trade Execution: When a signal is confirmed, the indicator renders a trade block with an entry line, a stop-loss (SL) based on a percentage from entry, and a take-profit (TP) level calculated via an ATR multiple.

Details

The indicator is built on the concept that trend and momentum often diverge during transitions. By separating these into two independent "engines," the tool can identify when both price action (ATR Trail) and volume conviction (Cumulative Delta) align.

• Trend Strength Score (TSS): A composite metric (0-100) where RSI slope contributes 40%, relative volume 35%, and ATR expansion 25%.
• Pressure Score: A composite metric (0-100) where delta ratio magnitude contributes 40%, volume rate 35%, and candle body relative to range 25%.
• Regime-Adaptive Multipliers: The ATR trailing stop automatically adjusts its distance based on current volatility (Low, Medium, or High), which is determined by the ratio of current ATR to its long-term average.
• Regime Arming: This feature allows users to restrict specific engines to certain volatility environments. For example, disabling the ATR trail during "Low" volatility can help avoid whipsaws in sideways markets.

Settings

The settings are divided into functional groups to control the logic of both engines and the visual output.

Engine A — ATR Trail

• ATR Length: Sets the period for the Average True Range calculation.
• Low/Med/High Regime Multipliers: Determines the trailing stop distance for different volatility levels.
• Regime ATR Lookback: The period used to calculate the baseline volatility for regime detection.
• Min TSS to Fire: The minimum Trend Strength Score required to validate a trail flip.

Engine B — Delta Volume

• Delta MA Length: The period for the moving average applied to the cumulative delta.
• Min Pressure to Fire: The minimum Pressure Score required to validate a delta crossover.
• RSI Overbought/Oversold Gate: Prevents bullish signals when overbought or bearish signals when oversold.

Hybrid Mode & Regime Arming

• Hybrid Mode: Selects the interaction logic between Engine A and Engine B.
• Engine A/B Armed In: Selects which volatility regimes (All, Low, Med+High, High) each engine is active in.

Visual & Dashboard

• Show Trade Block: Toggles the display of entry, SL, and TP zones.
• Show Pressure Candles: Enables 5-state coloring based on combined engine scores.
• Show Dashboard: Toggles the 9-column information table at the bottom of the chart.

FAQ

How do I interpret the different candle colors? The indicator uses a five-state coloring system: Strong Bull (dark green), Moderate Bull (light green), Neutral (blue/gray), Moderate Bear (light red), and Strong Bear (dark red), representing the aggregate pressure from both engines.

What does the "Engine" column in the dashboard represent? The dashboard displays which engine triggered the current state: "1" for Engine A (ATR), "2" for Engine B (Delta), or "3" for confluence where both engines agree.

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