TradingView has added two new volume-based indicators, Volume Delta and Cumulative Volume Delta.
These indicators use volume and price fluctuations within bars to estimate the difference (delta) between buying and selling pressure on each chart line, providing insight into an instrument’s sentiment and market dynamics.
The normal Volume Delta indicator analyzes each chart line from an intrabar time frame (ie, a time frame lower than that of the chart), categorizing the volume of each intrabar as positive or negative.
It gradually accumulates the polarized volume values on a chart line to calculate the volume delta and keeps track of the highest and lowest volume delta values accumulated during the line.
The resulting values are displayed as a candle: the open is always 0, the close of the candle indicates the final delta volume, and the high and low are respectively the highest and lowest delta volumes for the current line.
The Cumulative Volume Delta indicator is based on a similar principle, but with an added advantage: it accumulates volume deltas over a period to provide a broader perspective. The volume delta of each new line adds to the cumulative value calculated in the previous line.
The only exception is when a new period starts, which resets the cumulative calculation.
Thus, the opening of each new candle volume that does not mean the start of a new period is equal to the closing of the previous one, and the HLC values of this candle are based on its opening.
