Delta Money Flow Index

11월 5일

The Delta Money Flow Index is a modified version of the traditional Money Flow Index that uses directional volume instead of total volume to measure buying and selling pressure in a different way.

It helps traders identify overbought/oversold conditions based on actual buy/sell pressure rather than just total volume. It's designed for traders who want to see if price movements are backed by genuine buying or selling activity.

How to use it:

- Values above 80 indicate overbought conditions
- Values below 20 indicate oversold conditions
- The 50 level acts as a neutral zone. Above suggests buyers are in control, below suggests sellers are in control.
- Traders can check for divergences for potential reversal signals
- Works best on intraday timeframes where delta volume is most meaningful

What makes it different:

Unlike the standard MFI which uses total volume, the Delta MFI calculates an approximation of volume delta by assigning positive volume to up-closing candles and negative volume to down-closing candles.

This means:
- It focuses on directional pressure, not just activity
- Filters out low-conviction volume that doesn't move price
- Provides clearer signals when actual buying/selling dominates

The indicator includes visual aids like background colors for overbought/oversold and a fill showing whether the Delta MFI is above or below the 50 midpoint for quick interpretation.

11월 5일

릴리즈 노트

Added the option to also use an approximation of real Volume Delta as well.

For Delta the script uses a lower timeframe to calculate the differences between buying and selling.