OPEN-SOURCE SCRIPT

Volume Delta Divergence + Bollinger Bands (Filtered)

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📌 Volume Delta Divergence with Bollinger Bands (Filtered)
This script combines Volume Delta Divergence detection with Bollinger Bands to help identify high-probability buy and sell signals based on volume behavior and price action.

🔍 Key Features:
✅ Divergence Detection: Identifies when price moves in one direction (green/red candle), but the delta volume (buy vs sell volume) moves in the opposite direction — a common sign of hidden weakness or strength.

✅ Volume Strength Filter: Filters out weak divergence signals by checking if the delta volume is significantly larger than its historical average (user-defined lookback).

✅ Breakout Confirmation: A signal is only triggered when the next candle breaks the high or low of the divergence candle.

✅ Bollinger Bands Overlay: Adds standard Bollinger Bands (20-period SMA ± 2 standard deviations by default) for trend and volatility analysis.

✅ Clean Signal Display: Plots "BUY" and "SELL" labels only when strong divergences occur, reducing noise and false signals.

⚙️ User Inputs:
Custom timeframe for volume delta analysis

Delta volume average lookback period

Bollinger Band settings (length & deviation)

🧠 How to Use:
Use the divergence signals in conjunction with Bollinger Band positioning.

Consider SELL signals stronger when they occur near the upper Bollinger Band, and BUY signals near the lower band.

Combine with price action or RSI for added confluence.

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