Delta Strength (True TV Delta)

Description

Delta Strength measures the intensity of aggressive trading activity using TradingView’s native Volume Delta engine (ta.requestVolumeDelta).

Volume Delta shows which side is aggressive (buyers or sellers).
Delta Strength answers a different question:

How strong is that aggression compared to recent market behavior?

This indicator converts true per-bar volume delta into a relative strength ratio, helping identify institutional participation, initiative moves, absorption, and potential traps at key price locations.

No candle-based approximation is used. The calculation relies on TradingView’s internal bid-ask volume classification from lower timeframes.

How It Is Calculated

• Per-bar delta is derived from the difference between cumulative delta at bar close and bar open
• Absolute delta is averaged over a user-defined lookback period
• Current delta is compared against this average to produce a normalized strength value

This makes the indicator adaptive across instruments, volatility regimes, and sessions.

How to Read Delta Strength

• Values below the lower threshold indicate normal or low-quality activity
• Rising values show increasing professional participation
• Very high values indicate strong imbalance or aggressive initiative orders
• Extreme values without price follow-through often signal absorption or trapping

Delta Strength measures intensity only, not direction.

How to Use (Important)

Always combine Delta Strength with price location and structure.

Best locations include:
• VWAP and VWAP bands
• Previous Day High / Low
• Session highs and lows
• Range boundaries or value edges

Interpretation logic:
• Strong delta with price acceptance supports continuation
• Strong delta with price rejection suggests absorption or exhaustion

What This Indicator Is NOT

• Not a directional signal
• Not a standalone entry tool
• Not a trend indicator

Using Delta Strength without context can lead to false conclusions.

Intended Use

This indicator is designed for:
• Order Flow Analysis
• Market microstructure study
• Institutional activity confirmation
• Advanced discretionary trading workflows

It works best when combined with Volume Delta, VWAP, and structure-based analysis.

Summary

Delta shows who is aggressive.
Delta Strength shows how aggressive they are.
Price reaction shows whether that aggression is accepted or absorbed.

Used together, they provide insight into market intent rather than just price movement.