This script combines Cumulative delta volume information and the RSI set to an 8 period look back to show momentum in the market. It is displayed using a color overlay with 3 colors. Green candles indicate positive market momentum along with positive delta and positive price movement. Red candles indicate negative market momentum along with negative delta and negative price movement. Yellow candles indicate possible ranging conditions or the start of a pullback in either direction. There is also a moving average built into the indicator to help with trend direction.
Combined with price action strategies or even simple moving averages this indicator can be used as a powerful confirmation or confluence in any trading system. Works nicely to confirm breakout strategies as well.
Can be used on any market or time frame though for price action strategies it works best on time frames H1 and under.
Hi, could you pls explain the concept behind this indicator. Thank you!
Bav2905
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It looks excellent. Did some back study and it seems to work very well. Not used in live trading yet. I wanted to try in 5 and 10min TF. Thank you for the script.
JustMoTrades
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@Bav2905, Sorry for the late reply. Hope its working well for you. I use it live as a confirmation indicator for some other strategies i use and it has served me well. Thanks!
RedOctober8
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@JustMoTrades, Hello. I like the indicator, but I don’t know what to combine it with yet. Do you have any thoughts, if it’s not a secret for you?)