Up/Down Volume + Delta

The Up/Down Volume + Delta indicator provides a dual-layered volume analysis by plotting the delta between buying and selling pressure directly above traditional up/down volume columns. This script aims to provide traders with a clearer visual representation of dominant volume flows and help identify potential market turning points through volume-price divergences.

Usage

The Up/Down Volume + Delta indicator is designed to help traders distinguish between total volume and the net difference in buying/selling pressure.

• Delta Interpretation: The solid columns represent the Delta (Net Volume). Positive (bullish) delta columns appear when buying volume exceeds selling volume, while negative (bearish) delta columns appear when selling volume is dominant.
• Volume Composition: Beneath the delta columns, the indicator displays the total Up Volume and Down Volume in semi-transparent colors, allowing users to see the total activity alongside the net result.
• Divergence Spotting: Traders can use the delta columns to spot divergences at market tops and bottoms. For example, if price reaches a new high but the delta shows decreasing bullish pressure, it may signal a potential reversal.
• Scalping: By using lower timeframe data (LTF), scalpers can get a more granular view of volume distribution within a single candle on the main chart.

Details

The indicator utilizes request.security_lower_tf to scan data from lower timeframes, providing a more accurate approximation of intraday buying and selling volume than standard candle-based calculations.

The calculation logic classifies volume as "Up" or "Down" based on price action within the lower timeframe bars:

• If the close is higher than the open (or previous close), volume is categorized as Up Volume.
• If the close is lower than the open (or previous close), volume is categorized as Down Volume. The Delta is then calculated as the sum of Up Volume and Down Volume (where Down Volume is represented as a negative value).

Settings

• Use custom timeframe: When enabled, the indicator will use the specific timeframe defined in the "Timeframe" input instead of the automatic selection.
• Timeframe: Sets the lower timeframe used for volume calculations. Lower values offer higher precision but may have less historical depth.
• Up Color: Sets the color for bullish volume and positive delta.
• Down Color: Sets the color for bearish volume and negative delta.

FAQ

How do I interpret the delta columns?

The delta columns show the net difference between buying and selling volume. A tall green column indicates strong buying dominance, while a tall red column indicates strong selling dominance.

Why does the indicator look different on various timeframes?

The indicator relies on lower timeframe data. The precision of the volume breakdown depends on the "Timeframe" setting and the availability of historical intraday data for the selected symbol.

How can I access the Up/Down Volume + Delta?

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