Volume, Cumulative Delta Volume and Open Interest are great indications of strength and sentiment in the market. Until now they have required separate indicators, but this indicator can show them all.
With a clean and aesthetic plot, this indicator has the option to choose the data source: - Volume - the total volume of transactions, buys and sells - Up Volume - the total volume from buys only - Down Volume - the total volume from sells only - Up/Down Volume (Net) - the difference in the Buy Volume and Sell Volume - Cumulative Delta - the sum of the up/down volume for the previous 14 bars - Cumulative Delta EMA - a smoothed average of the sum of the up/down volume for the previous 14 bars, over a 14 period EMA - Open Interest - a user defined ticker, whose value is added to the plot, while this is designed to be used with Open Interest tickers, you can actually choose any ticker you want, perhaps you want to see DXY while charting Bitcoin!
There are several customization features for the colour of the plot, with a nice gradient colouring from high to low. You can choose the lookback which defines only the highest and lowest values for the colour gradient. There is also an option for how the Open Interest value is determined, based on Close, Open or differences between previous values.
While similar, Volume and Open Interest are not the same. To me the simplest explanation is Volume shows the trades that have been executed and the buy/sell direction, while Open Interest shows the value of open trades that are yet to be completed.
Volume shows strength, sentiment and volatility.
Open Interest does not show direction, but does indicate momentum and liquidity in the market.
Hi man,it look very good indicator but i didnt understand fully how it works.Where these calculations comes from like buy sell volume that relationship with open interest etc...Can you please explain settings and other things one more time for just idi<ts like me :()
Texmoonbeam
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@berke_gorgun, hi there, you are not an idiot! :) but you need to go and look online for this information, I cant offer you tuition on such detailed topics as volume, cvd and open interest. Once you understand what these are, you will understand what the indicator shows.
wl1996
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Hi,this can apply on the CFD? thanks.
Texmoonbeam
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@wl1996, hi, it only works if the data is provided by the exchange. I will update the indicator so it will tell you this if there is no data.
aronald
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I don't think your buy and sell volume are correct. Just because price closes higher it doesn't mean that there was more buy volume than sell volume. Actually when you get a divergence between candle direction and volume delta, this is a very important candle and shows absorption. Are you only measuring delta on the minute tf? If so, then that'll be closer to the true delta than using a higher tf like H1 at least.
Texmoonbeam
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@aronald, hi, not sure if you have used the indicator, but there is a setting labelled ‘timeframe used to get volume data’. You can choose and you can go to seconds if you wish. The code is adapted from TradingViews own up/down volume indicator. Though it is not perfect because by using lower timeframe candles, there is a maximum lookback of I think 10,000 candles. So if you want the highest accuracy, you set the timeframe setting to 1min, but on a daily chart, where 1 daily candle has 1440 minutes, you'd only be able to get 7 days of volume data 10,000 / 1440. If you increase the timeframe setting to say 5 minutes, you could go back 35 days, but accuracy is worse. Basically, try to use the 1min as default, this will be accurate enough.
alessm65617
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Great indicator though I can’t get the dual color chart you are getting.
Texmoonbeam
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@alessm65617, are you using the default settings? What settings and ticker are you using?
alessm65617
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@Texmoonbeam, hey man thanks again for this great indicator, don’t know how but it’s now working as intended.