OPEN-SOURCE SCRIPT
Delta Absorption
DELTA ABSORPTION
Delta Absorption is designed to find moments where aggressive buying or selling is strong, but price does not move much in the same direction.
That can suggest the aggressive side is being absorbed by passive buyers or sellers.
IMPORTANT:
This indicator uses estimated Delta based on candle price and volume.
It is NOT true exchange Bid/Ask order-flow Delta.
--------------------------------------------------
POSSIBLE BULL ABSORPTION
--------------------------------------------------
A possible Bull Absorption happens when:
1. Delta is strongly NEGATIVE
2. Sellers are aggressive
3. Price does NOT move down very much
4. Volume passes the filter if the volume filter is turned ON
This can suggest passive buyers are absorbing aggressive sellers.
GREEN SQUARE BELOW CANDLE
= Possible Bull Absorption
Simple example:
Strong selling
+
Very little downside price movement
=
Possible buyers absorbing sellers
--------------------------------------------------
POSSIBLE BEAR ABSORPTION
--------------------------------------------------
A possible Bear Absorption happens when:
1. Delta is strongly POSITIVE
2. Buyers are aggressive
3. Price does NOT move up very much
4. Volume passes the filter if the volume filter is turned ON
This can suggest passive sellers are absorbing aggressive buyers.
RED SQUARE ABOVE CANDLE
= Possible Bear Absorption
Simple example:
Strong buying
+
Very little upside price movement
=
Possible sellers absorbing buyers
--------------------------------------------------
CONFIRMED BULL ABSORPTION
--------------------------------------------------
A Confirmed Bull Absorption requires:
1. Possible Bull Absorption happens first
2. Strong selling fails to move price lower
3. Within the Confirmation Bars setting,
Delta strongly flips from negative to positive
4. The Flip must pass the Flip Threshold
GREEN DIAMOND BELOW CANDLE
= Confirmed Bull Absorption
Simple example:
Strong selling appears
+
Price resists going lower
+
Aggression strongly flips bullish
=
Confirmed Bull Absorption
--------------------------------------------------
CONFIRMED BEAR ABSORPTION
--------------------------------------------------
A Confirmed Bear Absorption requires:
1. Possible Bear Absorption happens first
2. Strong buying fails to move price higher
3. Within the Confirmation Bars setting,
Delta strongly flips from positive to negative
4. The Flip must pass the Flip Threshold
RED DIAMOND ABOVE CANDLE
= Confirmed Bear Absorption
Simple example:
Strong buying appears
+
Price resists going higher
+
Aggression strongly flips bearish
=
Confirmed Bear Absorption
--------------------------------------------------
DELTA LOOKBACK
--------------------------------------------------
Default: 10
Controls how many previous candles are used to calculate what normal Delta looks like.
Lower number:
More sensitive
Reacts faster
Higher number:
Smoother
Uses more history
--------------------------------------------------
ABSORPTION DELTA THRESHOLD
--------------------------------------------------
Default: 1.2
Controls how strong Delta must be before the candle can qualify as possible absorption.
1.2 means Delta must be about 1.2x normal.
Higher number:
Stronger Delta required
Fewer signals
Lower number:
Weaker Delta can qualify
More signals
--------------------------------------------------
ATR LENGTH
--------------------------------------------------
Default: 14
ATR is used to measure normal price movement.
This helps the indicator decide whether price moved too much or barely moved compared with what is normal.
--------------------------------------------------
MAXIMUM PRICE RESPONSE
--------------------------------------------------
Default: 0.50
Controls how much price is allowed to move in the same direction as the aggressive Delta.
Example:
If ATR = 10 points
Maximum Price Response = 0.50
Maximum allowed movement = 5 points
If aggressive buyers enter but price moves up less than 5 points,
the candle can still qualify as possible Bear Absorption.
If price moves strongly with the aggression,
the candle is less likely to be absorption.
Lower setting:
Price must resist aggression more strongly
Fewer signals
Higher setting:
Allows more price movement
More signals
--------------------------------------------------
SHOCK LOOKBACK
--------------------------------------------------
Default: 3
Controls how many previous candles are used to calculate what a normal change in Delta looks like.
This setting is used for the Flip confirmation.
Lower number:
Very sensitive
Reacts quickly
Higher number:
Smoother
Less sensitive
--------------------------------------------------
FLIP THRESHOLD
--------------------------------------------------
Default: 1.5
Controls how strong the Delta change must be before it counts as a strong Flip.
A Bull Flip means:
Negative Delta
to
Positive Delta
A Bear Flip means:
Positive Delta
to
Negative Delta
1.5 means the Delta change must be about 1.5x stronger than a normal Delta change.
Higher setting:
Stronger Flip required
Fewer confirmed signals
Lower setting:
Easier Flip requirement
More confirmed signals
--------------------------------------------------
CONFIRMATION BARS
--------------------------------------------------
Default: 5
Controls how many candles the indicator waits after possible absorption for a strong Flip to happen.
Example:
Confirmation Bars = 5
The Flip can happen within the next:
1 candle
2 candles
3 candles
4 candles
or
5 candles
If the Flip happens after that window,
it will not count as confirmed absorption.
--------------------------------------------------
USE VOLUME FILTER
--------------------------------------------------
When ON:
The candle must also have enough volume to qualify.
When OFF:
Volume does not affect whether the signal appears.
--------------------------------------------------
VOLUME AVERAGE LENGTH
--------------------------------------------------
Default: 20
Controls how many candles are used to calculate average volume.
--------------------------------------------------
MINIMUM VOLUME VS AVERAGE
--------------------------------------------------
Default: 0.60
Controls how much volume the candle needs when the Volume Filter is ON.
0.60
= at least 60% of average volume
1.00
= at least average volume
1.50
= at least 1.5x average volume
Higher setting:
Fewer signals
Stronger volume required
Lower setting:
More signals
--------------------------------------------------
SHOW POSSIBLE ABSORPTION
--------------------------------------------------
Turns the possible absorption squares ON or OFF.
GREEN SQUARE
= Possible Bull Absorption
RED SQUARE
= Possible Bear Absorption
--------------------------------------------------
SHOW CONFIRMED ABSORPTION
--------------------------------------------------
Turns the confirmed absorption diamonds ON or OFF.
GREEN DIAMOND
= Confirmed Bull Absorption
RED DIAMOND
= Confirmed Bear Absorption
--------------------------------------------------
SHOW STRONG DELTA DEBUG
--------------------------------------------------
This is mainly for testing the indicator.
When turned ON:
Green triangle
= Strong positive Delta
Red triangle
= Strong negative Delta
This helps show whether the Delta part of the indicator is working.
If triangles are appearing but no squares are appearing,
the Price Response filter is likely blocking the absorption signals.
If squares are appearing but very few diamonds are appearing,
the Flip confirmation is likely too strict.
--------------------------------------------------
QUICK MARKER GUIDE
--------------------------------------------------
GREEN SQUARE
= Possible Bull Absorption
Strong selling
+
Price does not move down much
RED SQUARE
= Possible Bear Absorption
Strong buying
+
Price does not move up much
GREEN DIAMOND
= Confirmed Bull Absorption
Possible Bull Absorption
+
Strong bullish aggression Flip
RED DIAMOND
= Confirmed Bear Absorption
Possible Bear Absorption
+
Strong bearish aggression Flip
--------------------------------------------------
SIMPLE SUMMARY
--------------------------------------------------
Possible Absorption
=
Strong aggression
+
Weak price response
Confirmed Absorption
=
Possible absorption
+
Strong Delta Flip afterward
Bull Absorption
=
Aggressive sellers may be getting absorbed by buyers
Bear Absorption
=
Aggressive buyers may be getting absorbed by sellers
Delta Absorption is designed to find moments where aggressive buying or selling is strong, but price does not move much in the same direction.
That can suggest the aggressive side is being absorbed by passive buyers or sellers.
IMPORTANT:
This indicator uses estimated Delta based on candle price and volume.
It is NOT true exchange Bid/Ask order-flow Delta.
--------------------------------------------------
POSSIBLE BULL ABSORPTION
--------------------------------------------------
A possible Bull Absorption happens when:
1. Delta is strongly NEGATIVE
2. Sellers are aggressive
3. Price does NOT move down very much
4. Volume passes the filter if the volume filter is turned ON
This can suggest passive buyers are absorbing aggressive sellers.
GREEN SQUARE BELOW CANDLE
= Possible Bull Absorption
Simple example:
Strong selling
+
Very little downside price movement
=
Possible buyers absorbing sellers
--------------------------------------------------
POSSIBLE BEAR ABSORPTION
--------------------------------------------------
A possible Bear Absorption happens when:
1. Delta is strongly POSITIVE
2. Buyers are aggressive
3. Price does NOT move up very much
4. Volume passes the filter if the volume filter is turned ON
This can suggest passive sellers are absorbing aggressive buyers.
RED SQUARE ABOVE CANDLE
= Possible Bear Absorption
Simple example:
Strong buying
+
Very little upside price movement
=
Possible sellers absorbing buyers
--------------------------------------------------
CONFIRMED BULL ABSORPTION
--------------------------------------------------
A Confirmed Bull Absorption requires:
1. Possible Bull Absorption happens first
2. Strong selling fails to move price lower
3. Within the Confirmation Bars setting,
Delta strongly flips from negative to positive
4. The Flip must pass the Flip Threshold
GREEN DIAMOND BELOW CANDLE
= Confirmed Bull Absorption
Simple example:
Strong selling appears
+
Price resists going lower
+
Aggression strongly flips bullish
=
Confirmed Bull Absorption
--------------------------------------------------
CONFIRMED BEAR ABSORPTION
--------------------------------------------------
A Confirmed Bear Absorption requires:
1. Possible Bear Absorption happens first
2. Strong buying fails to move price higher
3. Within the Confirmation Bars setting,
Delta strongly flips from positive to negative
4. The Flip must pass the Flip Threshold
RED DIAMOND ABOVE CANDLE
= Confirmed Bear Absorption
Simple example:
Strong buying appears
+
Price resists going higher
+
Aggression strongly flips bearish
=
Confirmed Bear Absorption
--------------------------------------------------
DELTA LOOKBACK
--------------------------------------------------
Default: 10
Controls how many previous candles are used to calculate what normal Delta looks like.
Lower number:
More sensitive
Reacts faster
Higher number:
Smoother
Uses more history
--------------------------------------------------
ABSORPTION DELTA THRESHOLD
--------------------------------------------------
Default: 1.2
Controls how strong Delta must be before the candle can qualify as possible absorption.
1.2 means Delta must be about 1.2x normal.
Higher number:
Stronger Delta required
Fewer signals
Lower number:
Weaker Delta can qualify
More signals
--------------------------------------------------
ATR LENGTH
--------------------------------------------------
Default: 14
ATR is used to measure normal price movement.
This helps the indicator decide whether price moved too much or barely moved compared with what is normal.
--------------------------------------------------
MAXIMUM PRICE RESPONSE
--------------------------------------------------
Default: 0.50
Controls how much price is allowed to move in the same direction as the aggressive Delta.
Example:
If ATR = 10 points
Maximum Price Response = 0.50
Maximum allowed movement = 5 points
If aggressive buyers enter but price moves up less than 5 points,
the candle can still qualify as possible Bear Absorption.
If price moves strongly with the aggression,
the candle is less likely to be absorption.
Lower setting:
Price must resist aggression more strongly
Fewer signals
Higher setting:
Allows more price movement
More signals
--------------------------------------------------
SHOCK LOOKBACK
--------------------------------------------------
Default: 3
Controls how many previous candles are used to calculate what a normal change in Delta looks like.
This setting is used for the Flip confirmation.
Lower number:
Very sensitive
Reacts quickly
Higher number:
Smoother
Less sensitive
--------------------------------------------------
FLIP THRESHOLD
--------------------------------------------------
Default: 1.5
Controls how strong the Delta change must be before it counts as a strong Flip.
A Bull Flip means:
Negative Delta
to
Positive Delta
A Bear Flip means:
Positive Delta
to
Negative Delta
1.5 means the Delta change must be about 1.5x stronger than a normal Delta change.
Higher setting:
Stronger Flip required
Fewer confirmed signals
Lower setting:
Easier Flip requirement
More confirmed signals
--------------------------------------------------
CONFIRMATION BARS
--------------------------------------------------
Default: 5
Controls how many candles the indicator waits after possible absorption for a strong Flip to happen.
Example:
Confirmation Bars = 5
The Flip can happen within the next:
1 candle
2 candles
3 candles
4 candles
or
5 candles
If the Flip happens after that window,
it will not count as confirmed absorption.
--------------------------------------------------
USE VOLUME FILTER
--------------------------------------------------
When ON:
The candle must also have enough volume to qualify.
When OFF:
Volume does not affect whether the signal appears.
--------------------------------------------------
VOLUME AVERAGE LENGTH
--------------------------------------------------
Default: 20
Controls how many candles are used to calculate average volume.
--------------------------------------------------
MINIMUM VOLUME VS AVERAGE
--------------------------------------------------
Default: 0.60
Controls how much volume the candle needs when the Volume Filter is ON.
0.60
= at least 60% of average volume
1.00
= at least average volume
1.50
= at least 1.5x average volume
Higher setting:
Fewer signals
Stronger volume required
Lower setting:
More signals
--------------------------------------------------
SHOW POSSIBLE ABSORPTION
--------------------------------------------------
Turns the possible absorption squares ON or OFF.
GREEN SQUARE
= Possible Bull Absorption
RED SQUARE
= Possible Bear Absorption
--------------------------------------------------
SHOW CONFIRMED ABSORPTION
--------------------------------------------------
Turns the confirmed absorption diamonds ON or OFF.
GREEN DIAMOND
= Confirmed Bull Absorption
RED DIAMOND
= Confirmed Bear Absorption
--------------------------------------------------
SHOW STRONG DELTA DEBUG
--------------------------------------------------
This is mainly for testing the indicator.
When turned ON:
Green triangle
= Strong positive Delta
Red triangle
= Strong negative Delta
This helps show whether the Delta part of the indicator is working.
If triangles are appearing but no squares are appearing,
the Price Response filter is likely blocking the absorption signals.
If squares are appearing but very few diamonds are appearing,
the Flip confirmation is likely too strict.
--------------------------------------------------
QUICK MARKER GUIDE
--------------------------------------------------
GREEN SQUARE
= Possible Bull Absorption
Strong selling
+
Price does not move down much
RED SQUARE
= Possible Bear Absorption
Strong buying
+
Price does not move up much
GREEN DIAMOND
= Confirmed Bull Absorption
Possible Bull Absorption
+
Strong bullish aggression Flip
RED DIAMOND
= Confirmed Bear Absorption
Possible Bear Absorption
+
Strong bearish aggression Flip
--------------------------------------------------
SIMPLE SUMMARY
--------------------------------------------------
Possible Absorption
=
Strong aggression
+
Weak price response
Confirmed Absorption
=
Possible absorption
+
Strong Delta Flip afterward
Bull Absorption
=
Aggressive sellers may be getting absorbed by buyers
Bear Absorption
=
Aggressive buyers may be getting absorbed by sellers
Open-source Skript
Ganz im Sinne von TradingView hat dieser Autor sein/ihr Script als Open-Source veröffentlicht. Auf diese Weise können nun auch andere Trader das Script rezensieren und die Funktionalität überprüfen. Vielen Dank an den Autor! Sie können das Script kostenlos verwenden, aber eine Wiederveröffentlichung des Codes unterliegt unseren Hausregeln.
Haftungsausschluss
Die Informationen und Veröffentlichungen sind nicht als Finanz-, Anlage-, Handels- oder andere Arten von Ratschlägen oder Empfehlungen gedacht, die von TradingView bereitgestellt oder gebilligt werden, und stellen diese nicht dar. Lesen Sie mehr in den Nutzungsbedingungen.
Open-source Skript
Ganz im Sinne von TradingView hat dieser Autor sein/ihr Script als Open-Source veröffentlicht. Auf diese Weise können nun auch andere Trader das Script rezensieren und die Funktionalität überprüfen. Vielen Dank an den Autor! Sie können das Script kostenlos verwenden, aber eine Wiederveröffentlichung des Codes unterliegt unseren Hausregeln.
Haftungsausschluss
Die Informationen und Veröffentlichungen sind nicht als Finanz-, Anlage-, Handels- oder andere Arten von Ratschlägen oder Empfehlungen gedacht, die von TradingView bereitgestellt oder gebilligt werden, und stellen diese nicht dar. Lesen Sie mehr in den Nutzungsbedingungen.