Delta Volume Score

How to Interpret the Delta Volume Score Indicator:

1. The Metrics Panel (Aggressive Score System)

The panel in the upper right corner is the "brain" of the indicator. It summarizes the battle between buyers and sellers.

• Buyer Score: Represents the accumulated volume of market buy orders (aggression).

• Seller Score: Represents the accumulated volume of market sell orders (aggression).

• Aggressive Score: The net balance (Delta). If positive and green, buyers are in control. If negative and red, sellers dominate.

• Signal (Confidence): Indicates the strength of conviction. Above 50%, the move is directional. Above 60%, there is extreme urgency (climax or the start of a strong trend).

2. Interpreting the Colored Candles

The indicator transforms volume into OHLC candles. The candle color is your immediate visual trigger:

• Green / Red (Trend): Flow is aligned with price. The market is healthy, and the trend is expected to continue.

• Light Blue (Bullish Divergence): Price falls or moves sideways, but Delta Volume rises. Meaning: Large investors are accumulating "hidden" buy positions. Prepare to buy.

• Orange (Bearish Divergence): Price rises, but Delta Volume falls. Meaning: Buyer exhaustion. Price is rising on "empty" volume and is likely to reverse soon.

• Lime / Gold (Absorption): Occurs when Delta is massive (high Score), but the price candle remains small. Meaning: A "wall" of passive orders has stopped the market. This is the strongest signal for a top or bottom reversal.

3. Standalone Trading Strategies

A. The Reversal "Sniper" (Divergence)

1. Wait for the price to reach an extreme level (daily high or low).

2. Observe if the indicator generates an Orange candle (at the top) or a Light Blue candle (at the bottom).

3. Confirm that the Signal is rising.

4. Entry: At the close of the colored candle, with the stop loss placed above/below the shadow of the Delta candle itself.

B. The Fakeout Filter

1. Price breaks out of a major resistance level.

2. Look at the Aggressive Score: if price rises but the Score decreases or turns negative, the breakout is a fakeout.

3. Action: Do not buy; instead, prepare to sell once the Score confirms the weakness.

C. Absorption Trade (The Climax)

1. During a strong sell-off, a Lime candle appears (Buy Absorption).

2. The Seller Score is extremely high, but the Aggressive Score begins to tick upward.

3. Meaning: This indicates that "Big Players" have absorbed all the selling pressure. It is one of the safest entries for a fast reversal.