TDL Delta Flow Pro

OVERVIEW

TDL Delta Flow Pro estimates real-time volume delta from lower-timeframe candle data, breaking each bar into buy volume versus sell volume to reveal who is actually in control on every candle.

Unlike basic volume indicators that only show total volume, Delta Flow decomposes the bar to show directional flow. A green candle with negative delta means sellers dominated despite price closing up -- that is a trap. A small-bodied candle with massive delta means a hidden counterparty is absorbing flow without letting price move -- that is hidden accumulation or distribution.

This indicator is designed for futures and active equity traders who need order flow context on their charts.

WHAT MAKES THIS DIFFERENT

Most volume indicators show you what already happened. Delta Flow shows what is happening underneath the candle:

• Absorption Detection -- identifies bars where large delta was fully absorbed by a hidden counterparty. Large buying but price did not move suggests distribution, and vice versa.
  
• Cumulative Delta Divergence -- flags when price makes a new high or low but cumulative delta fails to confirm, exposing exhaustion before price reverses.
  
• Trap Identification -- detects candles where price direction contradicts delta direction. A green candle where sellers dominated is a bull trap.
  
• Exhaustion Zones -- marks price levels where extreme delta events occurred with wick rejection, creating support and resistance zones that price respects on revisits.
  
• Confluence Scoring -- each signal is scored 1 through 5 based on z-score, delta percentage, volume confirmation, candle alignment, and wick structure.
  

SIGNAL TYPES

1. Delta Labels (Green and Red)
Directional volume flow on qualifying bars. Green labels below candle indicate buy pressure. Red labels above candle indicate sell pressure. These are best used for trade confirmation, not standalone entries.

2. ABSORB (Gold Labels)
Large delta with minimal price movement indicates hidden activity from a large counterparty. ABSORB signals at lows suggest accumulation. ABSORB signals at highs suggest distribution. These often precede strong directional moves.

3. DIV (Blue Labels)
Cumulative delta divergence from price. DIV at lows means price is making new lows but selling pressure is fading. DIV at highs means price is making new highs but buying pressure is fading. This is a trend exhaustion warning.

4. BULL TRAP and BEAR TRAP (Pink Labels)
Candle closed in one direction but delta went the other way. BULL TRAP is a green candle with negative delta. BEAR TRAP is a red candle with positive delta. Sequential traps in the same direction indicate high probability of reversal.

5. RES and SUP Zones (Red and Green Boxes)
Price levels where extreme delta events occurred with high volume and wick rejection. Price tends to react at these levels on revisits. Treat as dynamic support and resistance.

HOW TO USE
As a Confirmation Tool (Recommended):
Start with a setup from price action, key levels, or another system. Check Delta Flow to see if the delta label agrees with your trade direction. Look for absorption or divergence signals supporting the trade. If delta confirms, enter with higher confidence. If delta disagrees, consider skipping or reducing size.

The Absorption Reversal:
When an ABSORB signal appears after a strong directional move, wait 1 to 3 candles for direction confirmation. Enter in the absorption-implied direction with a stop beyond the absorption candle.

The Divergence Fade:
When a DIV signal appears at a swing extreme, wait for a confirming reversal candle pattern. Enter counter-trend and target mean reversion to recent consolidation.

The Trap Entry:
When BULL TRAP or BEAR TRAP fires, enter opposite to the candle direction. Place stop above the trap candle high for bull traps, below the trap candle low for bear traps.

CONFLUENCE
When multiple signals stack at the same level, probability increases significantly. The strongest combinations are absorption plus divergence at the same price area, and trap signals confirmed by large opposite-direction delta. Single delta labels without additional confirmation should not be traded as standalone signals.


KEY SETTINGS

Signal Filters:
- Min Delta Percent of Volume filters weak signals. Default is 15 percent. Lower for more signals on higher timeframes.
- Min Confluence Score requires multiple confirming factors. Default is 2. Raise to 3 or 4 for cleaner charts in choppy conditions.
- Min Bars Between Signals prevents label clustering. Default is 3.
- Only Print on Closed Bars prevents labels from appearing and disappearing on live bars. Recommended to keep enabled.

Absorption Detection:
- Min Delta Z-Score controls how extreme the delta must be. Default is 0.75. Higher values show only the most extreme absorption events.
- Max Move to Delta Ratio controls how small the price move must be relative to delta magnitude. Default is 0.3.

Exhaustion Zones:
- Zone Height in ATR multiples controls visual thickness. Default is 0.5.
- Zone Max Life in bars controls how long zones persist on chart. Default is 80.

Recommended Settings by Timeframe:
- Scalping (1 to 2 minute): Confluence 1, Delta Percent 10, Bars Between 1
- Day Trading (5 minute): Confluence 2, Delta Percent 15, Bars Between 3
- Swing (15 minute to 1 hour): Confluence 3, Delta Percent 20, Bars Between 5

Adaptive Thresholds:
When Auto-Adapt is enabled, the minimum delta threshold is calculated as 75 percent of the rolling 50-bar average absolute delta. This automatically calibrates sensitivity per instrument, since futures naturally have larger absolute delta than small-cap equities.

Confluence Scoring (1 through 5):
Plus 1 if delta z-score exceeds 1.0 (statistically significant).
Plus 1 if delta percentage exceeds 1.5 times the minimum threshold.
Plus 1 if volume is above the 50-bar average.
Plus 1 if candle direction aligns with delta direction.
Plus 1 if wick structure confirms the directional bias.


BEST PRACTICES
Pair with price structure. Delta Flow tells you who is in control. Your levels, formations, and structure tell you where to act. Using both together provides better context than either alone.

Do not fight absorption. When a large counterparty is absorbing, the subsequent move is often explosive because the opposing side is trapped.

Large delta at extremes often signals exhaustion. A very large positive delta at the top of a rally is more likely a climax than continuation.

Divergence leads price. DIV signals often precede reversals by 3 to 10 bars. Be patient and wait for a confirming candle.

Adjust for session context. The opening drive naturally has higher delta magnitude. Midday tends to have lower delta. The adaptive thresholds account for this automatically.


DISCLAIMER
This indicator is for educational and informational purposes only. It does not constitute financial advice or a recommendation to buy or sell any security. Trading futures and equities involves substantial risk of loss and is not suitable for all investors. Past performance is not indicative of future results. The confluence score is a weighted metric based on multiple technical factors. It is not a prediction of trade outcome. Always use proper risk management.