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Liquidity Delta

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This indicator estimates market pressure by calculating the difference between bid and ask volume based on candle structure and volume without access to an order book.

Methodology
  • Normalized delta by volume for consistency across assets, smoothed for reduced noise
  • The threshold channel highlights potential imbalances


Settings
  • Normalization Length: window size for averaging volume and delta
  • Smoothing Length: noise reduction for the normalized data
  • MA types for averaging delta, its normalization and final smoothing

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