Volume Delta Oscillator with Divergence Signals [BigBeluga]

Volume Delta Oscillator with Divergence Signals [BigBeluga] is an oscillator that approximates net buying and selling pressure from each candle's body and plots it three ways — as a raw delta histogram, a smoothed oscillator line, and a signal line. It brings delta-style analysis to any symbol by deriving pressure from price action, then automatically detecting bullish and bearish divergences between delta and price.

The indicator estimates buying/selling pressure, smooths it into an oscillator, and scans for pivots to detect divergences:

1 — Volume Delta Approximation

• Body Ratio: Measures the candle body size as a fraction of its full high-low range.
• Delta Estimate: Assigns positive volume when the candle closes up and negative when it closes down, scaled by the body ratio.
• Normalization: Delta is clamped to a [–50, +50] range so readings stay consistent across assets and timeframes.

2 — Oscillator & Signal

• Raw Delta Histogram: Plots the normalized delta per bar as columns, colored by sign and strength.
• Oscillator Line: An EMA over the Volume Delta Lookback produces the main smoothed delta line, drawn with a soft shadow for depth.
• Signal Line: A yellow WMA over the Signal Smoothing Length rides on top of the oscillator as a faster reference for crossovers.
• Stabilized Range: The Stabilize Oscillator Range toggle auto-scales the EMA so the oscillator keeps a consistent visual range regardless of the lookback period.
• Overbought / Oversold Zones: Shaded bands above +50 and below –50 highlight stretched conditions.

3 — Divergence Detection

• Pivot Scan: Uses Pivot Left/Right Lookback to detect oscillator pivots and compare each to the previous one.
• Bullish Divergence: Oscillator makes a higher low while price makes a lower low.
• Bearish Divergence: Oscillator makes a lower high while price makes a higher high.
• Divergence Lines: Drawn directly on the oscillator connecting the two pivots.

4 — Price Level Tracking

• Active Levels: Each divergence projects a horizontal price level onto the main chart from the pivot price.
• Live Extension: Uncrossed levels extend bar by bar until price trades through them.
• Locked History: Crossed levels freeze in place as dashed lines, keeping a visual record of past reactions.
• Capacity Cap: Only the most recent 5 uncrossed levels are kept to avoid clutter.

Beyond reading delta pressure, the indicator can be applied in several ways:

1. Gauge Buy/Sell Pressure: Use the histogram color and height to see whether buyers or sellers dominate the current bar.
2. Spot Overbought / Oversold: Watch for the oscillator pushing into the shaded zones above +50 or below –50.
3. Trade Divergences: Enter in the direction of the "Bull" or "Bear" label when the oscillator diverges from price.
4. Use Projected Price Levels: Treat active divergence levels as support or resistance until price crosses them.
5. Confirm with the Signal Line: Use signal line crossovers as short-term momentum confirmation.
6. Adjust Label Size: Use Divergence Label Size to match the labels to your chart's scale.
7. Toggle the View: Turn individual divergence features on or off to reduce clutter on the oscillator and chart.

Why this implementation is unique:

• Estimates volume delta directly from candle bodies, so it works on any symbol without extra data feeds.
• Plots three layers — raw histogram, smoothed oscillator line, and signal line — for a layered read on pressure.
• Auto-stabilizes the oscillator range across different lookback periods using the Stabilize Oscillator Range toggle.
• Combines oscillator divergences with projected price levels that extend in real time until crossed.
• Locks crossed levels as dashed history so past divergence reactions stay visible on the chart.
• Fully customizable colors, pivots, label size, and display toggles to match any chart theme.