Cumulative Delta_Effort vs Result_immy

**Cumulative Delta Oscillator\_effort**

This script creates a “Cumulative Delta Effort vs Result” oscillator, a custom indicator designed to measure the balance between buying and selling pressure (Effort) versus actual price movement (Result).

**How It Works**

Delta Volume: Measures aggressive buying vs selling per candle.
Cumulative Delta: Tracks net buying/selling pressure over time.
Effort vs Result: Compares volume delta (effort) to price movement (result).

Oscillator: Highlights divergence between effort and result, useful for spotting absorption (high effort, low result) and exhaustion (low effort, high result).

Histogram: Visual cue for accumulation/distribution zones.

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This indicator combines volume delta (effort) and price movement (result), so it tells you how efficiently volume is moving price — a concept sometimes called effort vs. result analysis in Wyckoff or volume–spread analysis (VSA).

🔍 Concept Summary

Effort (delta volume) = how much buying/selling pressure is there (volume side).
Result (price change) = how much that effort moves price (price side).
Oscillator (Effort − Result) = how much “extra” effort is not producing movement — often showing absorption or exhaustion.

📈 How to Interpret the Signals

1\. Oscillator above Signal line → Bullish Momentum
When osc > signal, histogram turns green.
Means buying effort is stronger than price reaction — often early sign of accumulation or rising demand.

This can signal:
Possible bullish continuation if confirmed by rising prices.
Or early absorption if prices aren’t yet breaking out (smart money absorbing supply).

✅ Bullish Entry Signal:

When the oscillator crosses above the signal line (green cross) and price is near support or consolidating → potential long setup.

2\. Oscillator below Signal line → Bearish Momentum
When osc < signal, histogram turns red.
Selling effort dominates; can mean increasing supply or price exhaustion.

This often appears before:
Bearish continuation (trend strengthening)
Or upthrust/exhaustion (price rising on weak volume)

❌ Bearish Entry Signal:

When the oscillator crosses below the signal line (red cross), especially if near resistance → potential short setup.

3\. Crossovers
The alert is triggered when: ta.cross(osc, signal)
That means:
Bullish crossover: oscillator line crosses above signal → potential buy momentum shift.
Bearish crossover: oscillator line crosses below signal → potential sell momentum shift.
These work like MACD crossovers, but volume-adjusted.

4\. Zero Line
The zero line is the neutral point.
When osc crosses above zero, overall buying effort exceeds price change — market gaining strength.
When osc crosses below zero, selling pressure increases — market weakening.

→ Combining signal line crosses with zero-line crosses gives stronger confirmation.

5\. Histogram Analysis (Absorption \& Exhaustion)**
Tall green bars: rising momentum (buyers dominate)
Tall red bars: falling momentum (sellers dominate)
Shrinking bars: momentum fading — possible reversal zone.

If volume increases but price stalls, oscillator may spike while price stays flat — absorption (big players taking the opposite side).
If price surges but oscillator weakens, exhaustion — move running out of volume support.

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🧠 Practical Strategy Example

Situation What It Might Mean Possible Action

Oscillator crosses above signal near support Buyer effort increasing, price may rise Go long / close shorts

Oscillator crosses below signal near resistance Seller effort rising, price may drop Go short / take profits

Oscillator high but price flat Absorption (big players absorbing supply) Wait for breakout confirmation

Oscillator low but price flat Absorption (demand absorbing supply) Look for bullish reversal

Oscillator diverges from price Volume–price divergence Early warning of reversal

⚙️ Best Practice

Works best on volume-sensitive assets (futures, crypto, forex tick data).

**Combine with:**

Price structure (support/resistance)
Volume profile / delta footprint
Candle confirmation

We’ll go through both bullish and bearish examples so you can see how to trade with it in real market context.

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🟩 Example 1 — Bullish Setup (Long Trade)
Step 1. Context: Identify Potential Support Zone
Before relying on any indicator, find support using:
Previous swing low
Demand zone
VWAP / volume profile node
Trendline or moving average

👉 You’re looking for a place where buyers might step in.

Step 2. Wait for Oscillator Signal
Watch the oscillator panel:
The oscillator (green line) has been below the signal line (orange) → bearish phase.
Then it crosses above the signal line and the histogram turns green.
This means:

➡️ Buying “effort” is increasing faster than price reaction — momentum shift upward.

Step 3. Confirm with Price
On your chart:
Candle closes above short-term resistance or above previous candle high
Ideally volume confirms (green candle with increasing volume)

✅ Bullish Entry Condition
osc crosses above signal
price closes above local resistance

Step 4. Entry \& Stop
Entry: Next candle open after confirmation cross
Stop-loss: Below recent swing low or support zone

Take profit:
2R or 3R target
or near next resistance level

🧠 Optional filter: Only take the trade if oscillator is rising from below zero (coming out of weakness).

Step 5. Manage Trade
If oscillator flattens or starts curling down → tighten stop
If it crosses below the signal again → consider exit
Example Interpretation:
Oscillator crosses above signal from -200 to +100, histogram turns green, price breaks a resistance line → strong bullish reversal → enter long.


🟥 Example 2 — Bearish Setup (Short Trade)

Step 1. Context: Find Resistance
Look for: Prior swing high
Supply zone
Major moving average
Trendline top

Step 2. Wait for Oscillator Cross Down
The oscillator (green) crosses below the signal line (orange).
Histogram turns red.
This means:

➡️ Selling effort is rising relative to price movement — bearish pressure.

Step 3. Confirm with Price
Price fails to make higher highs, or
Forms a bearish engulfing candle near resistance.

✅ Bearish Entry Condition
osc crosses below signal
price confirms with bearish candle

Step 4. Entry \& Stop
Entry: On next candle open
Stop-loss: Above resistance or recent swing high
Take profit: 2R or more or at next major support

Step 5. Exit on Opposite Signal
If oscillator crosses back above signal → momentum shift → exit short.
⚙️ Pro Tips

Tip Why It Matters

Use on 15m–4H+ charts More reliable delta signal

Combine with volume or OBV Confirms “effort” strength

Watch divergences Early reversals

Align with higher timeframe trend Avoid countertrend traps

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🧩 Quick Checklist

Step Condition Action

1 Identify zone (support/resistance) Mark area

2 Oscillator crossover Prepare order

3 Candle confirmation Enter

4 Stop-loss \& target Manage risk

5 Opposite cross Exit

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