Volume Delta

The Volume Delta indicator provides a comprehensive analysis of trading volume and buy-sell pressure to gauge market momentum and sentiment.

Usage

The Usage section describes how the script can be used to interpret market flow through volume distribution and trend confirmation.

Volume Analysis

The indicator displays volume in a separate pane using columns. Each column represents the total volume, with internal color levels indicating the proportion of buying versus selling activity. The dominant volume (higher) is placed behind the smaller volume to ensure both are visible. This allows traders to quickly identify which side of the market is controlling the current price action.

Gradient Candles

When enabled, the indicator overlays custom coloring on the main chart candles. The area between the open and close price is filled based on the percentage of the dominant volume. If buying volume is 70% of the total, 70% of the candle body will reflect the buy color, providing a visual representation of volume intensity directly on the price action.

EMA Trend & Volume Confirmation

The tool includes a crossover system using a Fast EMA (default 12) and a Slow EMA (default 26).

• Trend Identification: The EMA lines change color based on the trend direction.
• Volume Confirmation: Users can enable "Volume Confirmation" to filter signals. When active, markers only appear on EMA crossovers if the volume trend supports the move (calculated using the Volume Confirmation Length). This helps distinguish between high-conviction trend shifts and low-volume fluctuations.

Details

The script calculates buy and sell volume by analyzing the relationship between the candlestick's close, low, and high prices relative to the total volume. It integrates a dashboard (table) that displays real-time data including current Net Volume, total Buy/Sell volume, and their respective percentages. The "Net Volume" reflects market sentiment by showing the difference between uptick and downtick execution flows.

Settings

Style

• Volume on Candles: Enables or disables the gradient volume coloring on the main chart candlesticks.
• Volume Buy/Sell: Customizes the colors used for bullish and bearish volume.
• Position: Adjusts the location of the data table on the chart.
• Size Label/Table: Controls the scale of the visual UI elements.
• Show Label: Toggles a text label above the volume bars showing specific numerical data.
• Show History: Determines if labels remain on previous bars or only the most recent one.

EMA

• EMA: Toggles the visibility of the Exponential Moving Averages on the main chart.
• Volume Option: Selects whether to require volume confirmation for EMA signals.
• Fast/Slow EMA Length: Sets the lookback period for the moving averages.
• Volume Confirmation Length: Sets the period used to calculate the volume moving average for signal verification.
• Alert Frequency: Controls whether alerts trigger immediately during a bar or only upon bar close.

FAQ

How do I interpret the colored volume columns? The peak of the column is the total volume. The two internal colors show the split between buy and sell volume; the larger component is drawn behind the smaller one so you can see the exact ratio.

Why does my chart look small when I enable labels? Labels can expand the chart scale. It is recommended to use the "Logarithmic" scale setting on your price axis to maintain visual clarity.

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