Intrabar Delta-Volume Channels and Divergence States
Summary
This indicator estimates buying and selling volume within each chart bar by examining lower-timeframe intrabars, then expresses their difference as delta volume and as a share of total intrabar volume. It applies those delta-volume weights to a configurable moving-average reference to construct a channel, with options for relative-volume weighting and a cap on how far the weighted line can extend. The script also tracks channel states and compares the reference line’s slope with the weighted line’s slope to identify divergences.
Users can configure the intrabar timeframe or desired intrabar density, reference average, channel levels, breach rules, state markers, alerts, and bar coloring. More intrabars can improve detail but cover fewer historical chart bars because the script is constrained by an intrabar limit; the included display warns when intrabar counts are very low. Markers are described as appearing at bar close without repainting. The document explains indicator mechanics and implementation options, but gives no evidence that its signals predict returns. Intrabar volume allocation and the chosen settings remain measurement choices that require validation on the relevant market and data feed.
Key ideas
- Lower-timeframe bars are used to estimate up and down volume inside each chart bar.
- Delta volume and delta as a fraction of intrabar volume weight a moving-average reference to form a channel.
- Relative-volume weighting and a cap on weighted-line excursions are configurable.
- Divergences are identified when the reference and delta-weighted line have different slope directions.
- Higher intrabar precision reduces the historical chart coverage available under the stated data limit.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.