OPEN-SOURCE SCRIPT
Updated VW Delta Divergence
This indicator compares multiple Volume Weighted Moving Averages (VWMA) against the VWAP to highlight momentum shifts and potential divergences in price action. It gives traders a unique perspective by measuring volume-sensitive delta values, smoothing optionality, and tracking divergences between price and indicator behavior.
⚙️ How to Use
1. Setup & Interpretation
• Add the indicator to your chart and set your desired VWMA lengths (–). These define how sensitive the deltas are to price and volume fluctuations.
• The indicator plots the average delta between VWMA and VWAP. A positive value indicates that VWMA is above VWAP, suggesting bullish momentum; a negative value suggests bearish sentiment.
2. Visualization Features
• Color-coded average delta line:
• 🟣 Fuchsia when delta is positive (bullish bias)
• 🧊 Aqua when delta is negative (bearish bias)
• Optional histogram mode for visualizing delta strength
• Dynamic opacity scaling helps highlight the intensity of divergence
3. Divergence Detection
• Regular bullish divergence:
• Price forms a lower low
• Average delta forms a higher low
• Regular bearish divergence:
• Price forms a higher high
• Average delta forms a lower high
• These divergences are marked with green ⬆️ and red ⬇️ triangle shapes
4. Additional Momentum Signal
• A 10-period SMA overlays the delta to hint at momentum shifts
• If the SMA crosses the delta, the script triggers an alert condition titled “Momentum Shift Alert”
⚙️ How to Use
1. Setup & Interpretation
• Add the indicator to your chart and set your desired VWMA lengths (–). These define how sensitive the deltas are to price and volume fluctuations.
• The indicator plots the average delta between VWMA and VWAP. A positive value indicates that VWMA is above VWAP, suggesting bullish momentum; a negative value suggests bearish sentiment.
2. Visualization Features
• Color-coded average delta line:
• 🟣 Fuchsia when delta is positive (bullish bias)
• 🧊 Aqua when delta is negative (bearish bias)
• Optional histogram mode for visualizing delta strength
• Dynamic opacity scaling helps highlight the intensity of divergence
3. Divergence Detection
• Regular bullish divergence:
• Price forms a lower low
• Average delta forms a higher low
• Regular bearish divergence:
• Price forms a higher high
• Average delta forms a lower high
• These divergences are marked with green ⬆️ and red ⬇️ triangle shapes
4. Additional Momentum Signal
• A 10-period SMA overlays the delta to hint at momentum shifts
• If the SMA crosses the delta, the script triggers an alert condition titled “Momentum Shift Alert”
Release Notes
couple changes, timeframes mainlyRelease Notes
not a big deal but ive made the signal more coherent with buy sell logic, wasnt an issue if u inverted the paneOpen-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.