# Volume Delta Trailing Stop

The Volume Delta Trailing Stop watches for bars where lower-timeframe volume delta contradicts price direction, marks them blue or orange, and places a trigger line at their extreme. Once price breaks the trigger, a delta-governed trailing stop-line manages the position, with alerts on entries and stop breaks: order flow running both entry and exit.

- Indicator in the LuxAlgo Library, by LuxAlgo, published Sep 5, 2023.
- Access: free.
- Concepts: [Trailing Method Taxonomy](https://www.luxalgo.com/library/concept/trailing-method-taxonomy/) (primary), [Volume Delta](https://www.luxalgo.com/library/concept/volume-delta/)
- Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=cmpwn717y009xvhsgybm84zv4
- Page: https://www.luxalgo.com/library/indicator/volume-delta-trailing-stop/

The **Volume Delta Trailing Stop** builds an entry-to-exit workflow from lower-timeframe order flow, a volume-driven branch of the [trailing stop family](https://www.luxalgo.com/library/concept/trailing-method-taxonomy/). It hunts for bars whose [delta volume](https://www.luxalgo.com/library/concept/volume-delta/) disagrees with their direction, painting them blue when a red bar hides rising volume or orange when a green bar hides falling volume, and sets a trigger line at the divergent bar's extreme. Only a break of that trigger opens a position, which a delta-governed trailing stop-line then manages.

## How to Trade the Volume Delta Trailing Stop?

- **Blue bar (bullishBear)**: a red candle with upward lower-timeframe volume. The trigger line forms at its high.
- **Orange bar (bearishBull)**: a green candle with downward volume. The trigger forms at its low.
- **Trigger break**: price through the line opens the position, firing 'signal up' or 'signal down' alerts; the stop-line then tracks lows in bullish trades and highs in bearish ones.
- **TS-line break**: the exit signal, alerted as 'TS-line broken down' or 'TS-line broken up'.

Direction can be judged against the open or the previous close, and neutral volume (bars closing where they opened) can optionally count as up-volume. Lower-timeframe calculations may repaint, and a 100,000-intrabar ceiling means higher chart timeframes call for a coarser resolution such as 5 or 10 seconds.

## Volume Delta Trailing Stop Settings

- **LTF**: the lower timeframe, from 1 second to 1 minute; finer settings approach tick precision.
- **Trigger**: whether a close or the high/low must break the trigger line.
- **Adjustment / True Range Multiplier** (default: no adjustment): offsets the stop-line by a set percentage of price or by a true-range multiple.
- **Comparison basis**: judge price direction against the open or the previous close.
- **Neutral volume as up-volume**: how zero-movement volume is classified.

## Frequently Asked Questions

### What do the blue and orange bars mean?

They mark divergence between price and intrabar volume: blue (bullishBear) is a falling bar with rising lower-timeframe volume, orange (bearishBull) a rising bar with falling volume. These conflicts are what the tool converts into trigger lines.

### How does it compare to structure-based trailing stops?

This stop adjusts off order flow rather than price pivots. If you prefer exits anchored to structural swings instead, [Market Structure Trailing Stop](https://www.luxalgo.com/library/indicator/market-structure-trailing-stop/) takes that route. Running both shows when flow and structure agree.

### Is the Volume Delta Trailing Stop free?

Yes, the tool is free in the LuxAlgo Library and can be put to work in Quant, our coding agent, straight from this page. You can also copy the source code from this page and run it anywhere Pine Script® runs.

## Related indicators

- [Signals & Overlays](https://www.luxalgo.com/library/indicator/luxalgo-signals-overlays/) (Trailing Method Taxonomy): markdown at https://www.luxalgo.com/library/indicator/luxalgo-signals-overlays.md
- [Fibonacci Trailing Stop](https://www.luxalgo.com/library/indicator/fibonacci-trailing-stop/) (Trailing Method Taxonomy): markdown at https://www.luxalgo.com/library/indicator/fibonacci-trailing-stop.md
- [Neighboring Trailing Stop](https://www.luxalgo.com/library/indicator/neighboring-trailing-stop/) (Trailing Method Taxonomy): markdown at https://www.luxalgo.com/library/indicator/neighboring-trailing-stop.md
- [Statistical Trailing Stop](https://www.luxalgo.com/library/indicator/statistical-trailing-stop/) (Trailing Method Taxonomy): markdown at https://www.luxalgo.com/library/indicator/statistical-trailing-stop.md
- [FVG Trailing Stop](https://www.luxalgo.com/library/indicator/fvg-trailing-stop/) (Trailing Method Taxonomy): markdown at https://www.luxalgo.com/library/indicator/fvg-trailing-stop.md
- [Market Structure Trailing Stop](https://www.luxalgo.com/library/indicator/market-structure-trailing-stop/) (Trailing Method Taxonomy): markdown at https://www.luxalgo.com/library/indicator/market-structure-trailing-stop.md
- [Volume Delta Candles](https://www.luxalgo.com/library/indicator/volume-delta-candles/) (Volume Delta): markdown at https://www.luxalgo.com/library/indicator/volume-delta-candles.md
- [Volume Delta Methods (Chart)](https://www.luxalgo.com/library/indicator/volume-delta-methods-chart/) (Volume Delta): markdown at https://www.luxalgo.com/library/indicator/volume-delta-methods-chart.md

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Source: https://www.luxalgo.com/library/indicator/volume-delta-trailing-stop/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/
