Delta Volume is Difference between Buying Volume and Selling Volume. This indicator gives the Delta Volume based on Lower TimeFrame Candles. It utilizes security_lower_tf() function, a function that provides Lower TF candle data in Higher TF Chart.
security_lower_tf() is a new function provided by TradingView yesterday. If you are a PineScript Programmer, I suggest you to read about it, as it is a very powerful function that can extremely improve your trading strategy.
How this indicator works: This indicator checks volume data on lower TimeFrame Candles and Shows it's delta in the current Chart Timeframe. For example: If you open 4 hours chart, this indicator checks volume of 1 minute chart and separates Buying-Selling volume. Then it subtracts Candle's Selling volume from Candle's Buying volume, finally calculating the Delta Volume.
This indicator also provides a Smooth Delta Volume, which is moving average of Delta Volume. As Delta Volume changes a lot, Smooth Delta Volume can be very helpful for identifying Trends. Goto settings and in "Show" section select "Smooth Delta Volume" to lay it on the chart.
Settings is the Key: Settings are key to all of my indicators. Play around with it a bit. You can change what to show on the chart from settings. Smooth Delta Volume moving average length can be changed from the settings. You can also select "Show as Percentage", which shows Delta Volume as Percentage of Overall Candle's Volume. If you use Weekly or Monthly Timeframe, change increase lower timeframe from settings. Read the tooltips to understand what each settings mean. Tooltips are the (i) button in-front of each settings.
FAQs: Q. Does the indicator Repaint ? --- No. None of my indicators repaints. What you see now is what's drawn in real time. Q. What TimeFrame is Best for this Indicator ? --- It can be used on timeframes from 5 minutes to higher. But I would prefer to use it from timeframes higher than 30 minutes, as it gathers data from 1 minute TF. Q. Indicator doesn't show anything ? --- This indicator only works on security with Volume data. Also use it from higher timeframe than specified in Settings, because Volume Delta is calculated using Data from Lower TimeFrame. Q. Delta volume is not provided by TradingView, So how exactly does this indicator work? --- This indicator takes advantage of new pinescript function security_lower_tf(), and calculates volume for smaller timeframe data and calculates delta on higher timeframe. Q. Does this indicator give financial advice? --- No. Nope. Nein. Não. नहीं.
Conclusion: This indicator is very basic but if used correctly it can be very powerful. If you have any questions or suggestions feel free to comment below. I'd love to connect with you. Thank you.
Please, can you explain exactly how the indicator separates buy from selling volume? It works starting from bid/ask volume? Thank you
QEDTradoor
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Thanks man
Any ideas how you can change this to volume by price rather than volume per candle by time
MA_trader_
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why it doesn't work in replay mode?
coenw
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I intend to use it together with a Market Profile indicator.
Jorge_1965
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I am comparing all available DELTA indicators here and it seems like after 80% of checking I have found the one that works properly for my purpose. Thanks also for the explanations. I don't know how to program with Pine, but I wanted to know how the calculation works. Then I use an indicator. Extremely helpful.
MrSimplex
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Thank you very much for your indicator! Could you make one that was cumulative on a continuous chart instead of bar by bar? Thanks and best regards