OPEN-SOURCE SCRIPT
Volume Delta Bubble + Absorption
📊 Overview
A sophisticated volume analysis tool that identifies unusual buying/selling pressure and detects absorption patterns in real-time. This indicator combines statistical volume analysis with smart price action detection to reveal hidden market dynamics.
🔍 Key Features
1. Unusual Volume Detection
Statistical Z-Score Analysis: Flags statistically significant volume spikes using adaptive thresholds
Dual Detection Modes: Choose between adaptive (Z-Score) or fixed volume threshold methods
Volume Delta Calculation: Compares buying vs selling volume based on price movement
2. Smart Absorption Detection 🎯
Directional Absorption: Identifies WHO is absorbing whom:
B-ABS: Bullish Absorption (Buyers absorbing selling pressure)
S-ABS: Bearish Absorption (Sellers absorbing buying pressure)
Context-Aware Logic: Uses price rejection/support levels to determine absorption direction
Streak Tracking: Monitors consecutive absorption bars for stronger signals
3. Visual Features 🎨
Color-Coded Bubbles:
Green: Bullish volume
Red: Bearish volume
Light Green: Bullish absorption
Light Red: Bearish absorption
Smart Placement: Automatically avoids label overlapping
Multiple Styles: Choose between circle or box label styles
Background Highlighting: Absorbing bars are highlighted for quick identification
4. Information Display 📈
Real-time Stats: Volume, Z-Score, and percentage above average
Info Table: Shows absorption trend, current Z-Score, and average volume
Detailed Tooltips: Hover over bubbles for comprehensive information
Absorption Markers: Small triangles indicate absorption bars
⚙️ How It Works
Volume Delta Calculation
The indicator calculates the net difference between buying and selling volume:
Volume Delta Mode: Uses lower timeframe close vs open
Candle Delta Mode: Uses current timeframe close vs open
Neutral Handling: Accounts for doji candles with partial attribution
Absorption Logic
Detects when high volume fails to move price significantly:
Small Body Check: Candle body < 60% of average (configurable)
High Volume: Volume > 1.5x average (configurable)
Direction Detection:
Bullish Absorption: High selling volume but price holds above previous low
Bearish Absorption: High buying volume but price rejects below previous high
Statistical Analysis
Z-Score Calculation: (Current Volume - Average Volume) / Standard Deviation
Adaptive Thresholding: Default Z-Score ≥ 2.0 (2 standard deviations)
Historical Comparison: Uses configurable lookback period (default: 60 bars)
🛠️ Customization Options
Detection Settings
Calculation Source: Volume Delta or Candle Delta
Lower Timeframe: Analyze volume from faster timeframes
Detection Mode: Adaptive (Z-Score) or Fixed volume threshold
Lookback Period: 10-200 bars for statistical calculations
Visual Settings
Bubble Opacity: 0-100% transparency
Label Styles: Circle or box format
Smart Placement: Auto-adjust to avoid overlap
Color Customization: Full control over all color schemes
Absorption Settings
Body Size Ratio: Adjust sensitivity (0.1-1.0)
Absorption Labels: Toggle B-ABS/S-ABS labels
Background Highlight: Toggle bar highlighting
📊 Output Information
Each bubble displays:
Volume: Formatted in millions (e.g., "1.25M")
Z-Score: Statistical significance (e.g., "Z:2.45")
Direction: Color-coded bullish/bearish
Absorption Type: B-ABS or S-ABS when applicable
🎯 Use Cases
For Traders:
Breakout Confirmation: Validate breakouts with volume support
Reversal Signals: Spot absorption at key support/resistance levels
Trend Continuation: Identify accumulation/distribution patterns
Risk Management: Avoid false breakouts with volume context
For Analysts:
Volume Profile Analysis: Understand institutional activity
Market Structure: Identify hidden support/resistance
Order Flow: Track buying/selling pressure in real-time
Statistical Edge: Use Z-Score for objective volume assessment
⚡ Pro Tips
Combine with Price Action: Use absorption signals at key S/R levels
Multi-Timeframe: Lower timeframe provides early signals
Confirmation: Wait for candle close before acting on signals
Risk Management: Use smaller position sizes on absorption signals
🔧 Technical Details
Built With: Pine Script v5
Maximum Labels: 500 (configurable)
Overlay: Yes (displays on main chart)
Calculation: On bar close (most accurate)
Performance: Optimized for real-time use
📱 Alert Conditions
Unusual Volume Delta: Triggers on statistically significant volume
Absorption Detected: Alerts when absorption pattern forms
Customizable: Set your own threshold levels
🎨 Design Philosophy
Clarity: Minimal, clean visual presentation
Information Density: Maximum insight with minimum clutter
Customizability: Every visual element is adjustable
User Experience: Intuitive for both beginners and professionals
📚 Educational Value
This indicator teaches:
Volume-price relationship
Statistical volume analysis
Absorption and distribution concepts
Order flow interpretation
Multi-timeframe analysis
🤝 Community Benefits
Open Logic: Transparent calculations for peer review
Educational: Helps traders understand volume dynamics
Customizable: Adapts to different trading styles
Reliable: Based on proven volume analysis principles
🚀 Why This Indicator?
Smart Detection: Goes beyond basic volume analysis
Directional Clarity: Clearly shows who's in control
Statistical Rigor: Uses Z-Score for objective signals
Professional Grade: Suitable for institutional analysis
Beginner Friendly: Clear visuals and explanations
Recommended Settings by Timeframe:
Scalping (1-5 min): Lower TF = "1", Z-Score = 2.5
Day Trading (15-60 min): Lower TF = "5", Z-Score = 2.0
Swing Trading (4H-Daily): Lower TF = "60", Z-Score = 1.8
Perfect for: Day traders, swing traders, volume analysts, institutional traders, and anyone wanting to understand the true story behind price movements through volume analysis.
Combine with price action and support/resistance levels for best results!
A sophisticated volume analysis tool that identifies unusual buying/selling pressure and detects absorption patterns in real-time. This indicator combines statistical volume analysis with smart price action detection to reveal hidden market dynamics.
🔍 Key Features
1. Unusual Volume Detection
Statistical Z-Score Analysis: Flags statistically significant volume spikes using adaptive thresholds
Dual Detection Modes: Choose between adaptive (Z-Score) or fixed volume threshold methods
Volume Delta Calculation: Compares buying vs selling volume based on price movement
2. Smart Absorption Detection 🎯
Directional Absorption: Identifies WHO is absorbing whom:
B-ABS: Bullish Absorption (Buyers absorbing selling pressure)
S-ABS: Bearish Absorption (Sellers absorbing buying pressure)
Context-Aware Logic: Uses price rejection/support levels to determine absorption direction
Streak Tracking: Monitors consecutive absorption bars for stronger signals
3. Visual Features 🎨
Color-Coded Bubbles:
Green: Bullish volume
Red: Bearish volume
Light Green: Bullish absorption
Light Red: Bearish absorption
Smart Placement: Automatically avoids label overlapping
Multiple Styles: Choose between circle or box label styles
Background Highlighting: Absorbing bars are highlighted for quick identification
4. Information Display 📈
Real-time Stats: Volume, Z-Score, and percentage above average
Info Table: Shows absorption trend, current Z-Score, and average volume
Detailed Tooltips: Hover over bubbles for comprehensive information
Absorption Markers: Small triangles indicate absorption bars
⚙️ How It Works
Volume Delta Calculation
The indicator calculates the net difference between buying and selling volume:
Volume Delta Mode: Uses lower timeframe close vs open
Candle Delta Mode: Uses current timeframe close vs open
Neutral Handling: Accounts for doji candles with partial attribution
Absorption Logic
Detects when high volume fails to move price significantly:
Small Body Check: Candle body < 60% of average (configurable)
High Volume: Volume > 1.5x average (configurable)
Direction Detection:
Bullish Absorption: High selling volume but price holds above previous low
Bearish Absorption: High buying volume but price rejects below previous high
Statistical Analysis
Z-Score Calculation: (Current Volume - Average Volume) / Standard Deviation
Adaptive Thresholding: Default Z-Score ≥ 2.0 (2 standard deviations)
Historical Comparison: Uses configurable lookback period (default: 60 bars)
🛠️ Customization Options
Detection Settings
Calculation Source: Volume Delta or Candle Delta
Lower Timeframe: Analyze volume from faster timeframes
Detection Mode: Adaptive (Z-Score) or Fixed volume threshold
Lookback Period: 10-200 bars for statistical calculations
Visual Settings
Bubble Opacity: 0-100% transparency
Label Styles: Circle or box format
Smart Placement: Auto-adjust to avoid overlap
Color Customization: Full control over all color schemes
Absorption Settings
Body Size Ratio: Adjust sensitivity (0.1-1.0)
Absorption Labels: Toggle B-ABS/S-ABS labels
Background Highlight: Toggle bar highlighting
📊 Output Information
Each bubble displays:
Volume: Formatted in millions (e.g., "1.25M")
Z-Score: Statistical significance (e.g., "Z:2.45")
Direction: Color-coded bullish/bearish
Absorption Type: B-ABS or S-ABS when applicable
🎯 Use Cases
For Traders:
Breakout Confirmation: Validate breakouts with volume support
Reversal Signals: Spot absorption at key support/resistance levels
Trend Continuation: Identify accumulation/distribution patterns
Risk Management: Avoid false breakouts with volume context
For Analysts:
Volume Profile Analysis: Understand institutional activity
Market Structure: Identify hidden support/resistance
Order Flow: Track buying/selling pressure in real-time
Statistical Edge: Use Z-Score for objective volume assessment
⚡ Pro Tips
Combine with Price Action: Use absorption signals at key S/R levels
Multi-Timeframe: Lower timeframe provides early signals
Confirmation: Wait for candle close before acting on signals
Risk Management: Use smaller position sizes on absorption signals
🔧 Technical Details
Built With: Pine Script v5
Maximum Labels: 500 (configurable)
Overlay: Yes (displays on main chart)
Calculation: On bar close (most accurate)
Performance: Optimized for real-time use
📱 Alert Conditions
Unusual Volume Delta: Triggers on statistically significant volume
Absorption Detected: Alerts when absorption pattern forms
Customizable: Set your own threshold levels
🎨 Design Philosophy
Clarity: Minimal, clean visual presentation
Information Density: Maximum insight with minimum clutter
Customizability: Every visual element is adjustable
User Experience: Intuitive for both beginners and professionals
📚 Educational Value
This indicator teaches:
Volume-price relationship
Statistical volume analysis
Absorption and distribution concepts
Order flow interpretation
Multi-timeframe analysis
🤝 Community Benefits
Open Logic: Transparent calculations for peer review
Educational: Helps traders understand volume dynamics
Customizable: Adapts to different trading styles
Reliable: Based on proven volume analysis principles
🚀 Why This Indicator?
Smart Detection: Goes beyond basic volume analysis
Directional Clarity: Clearly shows who's in control
Statistical Rigor: Uses Z-Score for objective signals
Professional Grade: Suitable for institutional analysis
Beginner Friendly: Clear visuals and explanations
Recommended Settings by Timeframe:
Scalping (1-5 min): Lower TF = "1", Z-Score = 2.5
Day Trading (15-60 min): Lower TF = "5", Z-Score = 2.0
Swing Trading (4H-Daily): Lower TF = "60", Z-Score = 1.8
Perfect for: Day traders, swing traders, volume analysts, institutional traders, and anyone wanting to understand the true story behind price movements through volume analysis.
Combine with price action and support/resistance levels for best results!
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.