Volume Delta Filtered Overlay v1.1 by Ramtraderbook

Volume Delta Filtered Overlay v1.1 by Ramtraderbook

This indicator visually displays the volume delta directly on the price chart using colored circles. Its main goal is to highlight significant changes in the volume delta, categorizing them by direction and magnitude.

How It Works

1. Volume Delta Calculation
- Measures the difference between buying and selling volume on a lower time frame.

2. Threshold Filter
- Only displays data if the delta exceeds a minimum threshold set by the user.

3. Colors by Direction
- Bullish color: If the delta is positive (more buying).
- Bearish color: If the delta is negative (more selling).

4. Circle Placement
- Circles are placed above the candle for a positive delta and below the candle for a negative delta.

Customizable Inputs

- Delta Threshold: Defines the minimum delta value that will be plotted.
- Customizable Colors: Allows you to set different colors for positive and negative delta circles.
- **Lower Time Frame**: Scans data on a lower time frame for greater accuracy.

Important Note on Data

TradingView does not handle market depth data such as order book information. The volume delta calculation is an approximation based on the asset’s volume and price behavior. This means it does not precisely reflect the actual flow of buy or sell orders in the market, but rather an estimate derived from available data.


Conclusion

The **Volume Delta Filtered Overlay v1.1 by Ramtraderbook** is a visual tool that helps quickly identify significant buy or sell volume movements, making it ideal for strategies that rely on order flow analysis. However, it is recommended to combine it with other tools for a more comprehensive analysis.