This script is based on the work originally done by kprsa for the Monster Cumulative Delta indicator, but adds Bollinger Bands and upgrades it to version 4 from version 1.
It is an approximation of the Cumulative Delta Volume that is usually based on volume differences between market and limit orders, but because that data is not available, this indicator allocates a portion of the volume of a candle to the "upward" and "downward force" of each candle.
The upward force of a "Buy" candle is calculated by the High-Low The downward force is calculated by (High-Close)+(Open-Low) "Sell" candles are calculated in the same way just opposite Total force=up force + down force Up volume approximation = candle volume * up force/total force Down volume approximation = candle volume * down force/total force
The result is similar to OBV, but not exactly the same, and allows for a "candle size" which you can't get with On Balance Volume.
I had never used a Cumulative Delta Volume indicator before, but when I started using it myself, it proved very effective when there was a deviation from price. It was also very effective in my opinion when Bollinger Bands was added to assess the standard deviation of the CDV compared to the Bollinger Band of price and looking for areas where the CDV reaction to hitting or getting close to the BB was different.
I hope you find it useful! Of course, it comes with no guarantee of profits or any investing advice whatsoever.
Does TradingView support tick data for this to be truly accurate?
RobertLC
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I noticed it doesn't calculate the whole session (only US, so with futures indices, for example, it's missing all the overnight Tokyo and London session..)
Can you add a setting for that please?
(And is it indeed using tick data, like some of the other delta indicators?)
Appreciate!
shailenew2524
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Repaint??
Elmee
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Great job sir
ThusHeSpoke
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Great work, Can you add MTF options to it?
Zun_Ruf
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Thanks! I am delighted. Helps to understand what is happening on a 3-minute chart.