OPEN-SOURCE SCRIPT
Volume Forge
█ OVERVIEW
Volume Forge is a modular volume flow analysis panel designed to assess the quality and direction of market activity by combining several complementary volume analysis methods.
Most volume tools answer only one question. Delta shows buying and selling pressure. RVOL indicates whether volume is above average. CMF measures capital flow. Weis Wave determines the direction of the dominant wave, while volume efficiency analysis helps detect absorption. Each of these tools is valuable, but when analyzed separately they present only a fragment of the market picture.
Volume Forge was designed as a modular system because a single volume indicator does not allow the market to be evaluated from a broader perspective. High volume does not yet mean buyer dominance. Positive delta does not necessarily mean capital inflow. Strong money flow does not always translate into an efficient price move. Only the mutual agreement of several independent methods makes it possible to determine whether the observed impulse is truly supported by volume.
Each module analyzes a different aspect of the same phenomenon, while the central element of the indicator is Flow Confluence – a weighted scoring system that compares the results of all components and evaluates the degree of their agreement. Instead of manually analyzing several separate indicators, the user receives one coherent panel that shows both the details of individual metrics and their final assessment.
The result is a tool that allows multidimensional volume analysis – from short-term buying and selling pressure, through relative market activity strength and capital flow, to the evaluation of signal agreement and the detection of potential signs of trend exhaustion.
█ CONCEPTS
Delta Oscillator
Delta Oscillator is the main module of the indicator and is responsible for assessing the direction of buying and selling pressure. Instead of using real delta from the futures market, it uses approximate directional volume calculated from the relationship between the candle's open and close, scaled by the candle's total range. The values are then accumulated and smoothed, creating an oscillator that shows the dominance of one side of the market.
Delta primarily answers the question:
Is buying or selling pressure currently dominant?
Relative Volume (RVOL)
RVOL compares current volume with its historical average, showing whether market activity is average, elevated or extreme.
The direction of a price move alone says little without information about the strength of market participation. RVOL allows impulses supported by high activity to be distinguished from moves that occur on low volume.
RVOL answers the question:
Is the current move taking place on sufficiently high volume?
Chaikin Money Flow (CMF)
CMF analyzes capital flow by taking into account both volume and the position of the close within the candle’s range.
Unlike Delta, which measures short-term directional pressure, CMF shows whether capital is actually flowing into or out of the instrument. This allows it to confirm or challenge signals generated by the other modules.
CMF answers the question:
Is money actually flowing into the market?
Volume Efficiency / Climax
High volume does not always lead to a large price move. Sometimes the market generates very high activity while the price remains almost motionless.
The Volume Efficiency module identifies exactly these situations by comparing the size of the price move with volume and filtering them relative to ATR. High volume with low efficiency may indicate absorption or the final phase of an impulse.
This is an informational module that provides additional context but does not affect the final Flow Confluence score.
Weis Wave
Weis Wave presents the direction of the dominant market wave instead of analyzing individual candles.
The module uses ATR-based volatility to determine moments of direction change and displays a subtle background that shows the currently dominant wave.
It answers the question:
What is the broader direction of market movement?
Flow Confluence
Flow Confluence is the most important element of the entire indicator.
It is not another oscillator, but analyzes the agreement of all the remaining modules. Delta, Delta direction, RVOL, CMF level, CMF direction and Weis Wave cast votes for the buying or selling side. Each component has its own weight, so the user can decide which elements should have the greatest importance.
The Flow Confluence table shows both the number of agreeing modules and the final point score. Signals appear only when the obtained score exceeds the defined threshold.
Flow Confluence answers the question:
Do all volume analysis methods point in the same direction?
Divergence Detection
The final layer is the analysis of divergences between price and the Delta oscillator.
If price makes a new extreme while Delta does not confirm the move, this may indicate weakening pressure from one side of the market and increase the probability of a correction or trend reversal.
Divergences serve a warning function and provide additional context when interpreting the other modules.
Why combine multiple volume tools?
Each method analyzes a different aspect of volume flow:
• Delta → Who currently dominates – buyers or sellers?
• RVOL → Is market activity high enough?
• CMF → Is capital actually flowing in or out?
• Volume Efficiency → Does volume translate into price movement, or is it being absorbed?
• Weis Wave → What is the dominant direction of the broader wave?
• Flow Confluence → Do all modules confirm the same scenario?
• Divergences → Is price starting to diverge from volume?
█ FEATURES
Oscillator Settings
• Show Delta Oscillator – displays the main Delta oscillator together with gradient fill. Hiding the oscillator does not disable its calculations – the module continues to participate in the Flow Confluence scoring.
• Cumulative Delta Length – number of bars used to calculate cumulative directional volume.
• Smoothing Length (EMA) – length of the EMA that smooths the Delta oscillator. Higher values produce a smoother but slower-reacting oscillator.
• Delta Area Gradient Transparency – sets the transparency of the fill between the Delta oscillator and the zero level.
RVOL Settings
• Show RVOL Histogram – displays the Relative Volume histogram. Hiding the histogram does not disable calculations – RVOL continues to feed the Climax and Flow Confluence modules.
• RVOL Average Length – number of bars used to calculate the average reference volume.
• Threshold – Weak – level above which volume is considered slightly elevated.
• Threshold – Medium – medium-high volume level. It is also used by the Flow Confluence scoring.
• Threshold – Strong – defines the strong Relative Volume level.
• Threshold – Extreme – defines the exceptionally high volume level used for the strongest histogram highlighting.
CMF Settings
• Show CMF – displays the Chaikin Money Flow wave above the overbought level and below the oversold level.
• CMF Period – number of bars used for Chaikin Money Flow calculations.
• CMF Gradient Transparency – sets the transparency of the CMF wave gradient fill.
Volume Efficiency
• Show Climax / Absorption Markers – displays markers on candles where very high volume did not translate into a correspondingly large price move, which may indicate absorption or culmination of activity.
• Efficiency Normalization Period – number of bars used to normalize volume efficiency.
• RVOL Threshold for Climax / Absorption – minimum Relative Volume required to classify a candle as potential absorption.
• Max Normalized Efficiency – maximum allowed price move efficiency. Lower values result in more selective absorption detection.
• Max Candle Range relative to ATR – prevents large impulsive candles from being marked as absorption by limiting their maximum range relative to ATR.
Weis Wave – Oscillator Background
• Highlight background by Weis Wave direction – colors the pane background according to the direction of the current Weis Wave.
• ATR Length – ATR period used to determine the minimum move required to change wave direction.
• ATR Multiplier – determines how large a price move is required to reverse the Weis Wave direction.
• Highlight Transparency – transparency of the Weis Wave background.
• Highlight Height – height of the highlighted area above the overbought level or below the oversold level.
Divergence Settings
• Enable Divergence Detection – activates detection of divergences between price and the Delta oscillator.
• Pivot Length (Left / Right) – number of bars required to confirm local pivots used when searching for divergences.
Threshold Levels
• Overbought Threshold – defines the Delta oscillator level considered market overbought.
• Oversold Threshold – defines the Delta oscillator level considered market oversold.
• OB/OS Line Width – thickness of the overbought and oversold level lines.
• OB/OS Gradient Transparency – Close to Level – sets line visibility when the oscillator is near the level.
• OB/OS Gradient Transparency – Far From Level – sets line visibility when the oscillator is far from the level.
Flow Confluence
• Show Flow Confluence Table – displays the table summarizing all modules participating in the scoring.
• Table Position – sets the position of the table on the chart.
• Table Text Size – sets the font size.
Flow Confluence – Weights
Each module can receive its own weight that determines its influence on the final point score.
• Weight: Delta Oscillator – points awarded for the oscillator position relative to the zero level.
• Weight: Delta Direction – points awarded for the rise or fall of the Delta oscillator.
• Weight: RVOL – points awarded when Relative Volume exceeds the medium threshold in line with candle direction.
• Weight: CMF Level – points awarded for confirmation of positive or negative capital flow.
• Weight: CMF Direction – points awarded for accelerating or weakening capital flow.
• Weight: Weis Wave – points awarded for agreement with the direction of the current Weis Wave.
Flow Confluence – Signals
• Enable Flow Confluence Signal – displays BUY and SELL diamonds after the score exceeds the defined threshold.
Signals appear while the candle is still forming, but due to price fluctuations they may also disappear during that time. The signal becomes permanent and does not disappear only after the candle closes.
• Minimum score for a signal – minimum number of points required to generate a signal.
• Signal only on first occurrence – prevents multiple signals from being displayed while the same condition remains active.
• Buy Signal Color – color of the bullish diamonds.
• Sell Signal Color – color of the bearish diamonds.
Colors
• Zero Line – color of the Delta oscillator zero level.
• Bullish Color – main color used by all positive elements of the indicator.
• Bearish Color – main color used by all negative elements of the indicator.
█ APPLICATIONS
Assessing the quality of market moves
The primary use of the indicator is to evaluate whether the current price move is truly supported by volume. By analyzing several independent metrics the user receives a much more complete picture than when using a single volume indicator.
Filtering weak impulses
Not every dynamic price move is backed by adequate volume. Volume Forge helps distinguish impulses supported by real market activity from moves that occur with weak volume confirmation.
Detecting volume absorption
The Climax module identifies situations in which very high volume does not translate into a correspondingly large price move. This may indicate order absorption by larger market participants, profit-taking or gradual exhaustion of the impulse.
Confirming trend direction
Simultaneous analysis of Delta, CMF and Weis Wave makes it possible to determine whether the dominant market direction is confirmed by different aspects of volume flow.
Detecting potential reversals
Divergences between price and the Delta oscillator can signal weakening buying or selling pressure even before a clear trend change appears.
Building a custom volume analysis model
Thanks to the ability to individually weight each module, the user can create their own market assessment model. For example, one trader may place greater emphasis on Delta and RVOL, while another may consider CMF and Weis Wave more important elements of their strategy.
█ NOTES
• Hiding a given module affects only its display. Calculations continue to run in the background and remain available to the Flow Confluence system.
• The Climax / Absorption module is purely informational and does not participate in the final scoring.
• Divergences indicate a discrepancy between price and the Delta oscillator and should be treated as a warning signal, not an automatic reversal signal.
• Flow Confluence signals are best used as a confirming element of market analysis together with structure, price action, support and resistance zones, momentum or other technical analysis tools.
• All module weights are fully configurable, allowing the user to adapt the volume assessment model to their own trading style while retaining the same multi-layered volume flow analysis logic.
Volume Forge is a modular volume flow analysis panel designed to assess the quality and direction of market activity by combining several complementary volume analysis methods.
Most volume tools answer only one question. Delta shows buying and selling pressure. RVOL indicates whether volume is above average. CMF measures capital flow. Weis Wave determines the direction of the dominant wave, while volume efficiency analysis helps detect absorption. Each of these tools is valuable, but when analyzed separately they present only a fragment of the market picture.
Volume Forge was designed as a modular system because a single volume indicator does not allow the market to be evaluated from a broader perspective. High volume does not yet mean buyer dominance. Positive delta does not necessarily mean capital inflow. Strong money flow does not always translate into an efficient price move. Only the mutual agreement of several independent methods makes it possible to determine whether the observed impulse is truly supported by volume.
Each module analyzes a different aspect of the same phenomenon, while the central element of the indicator is Flow Confluence – a weighted scoring system that compares the results of all components and evaluates the degree of their agreement. Instead of manually analyzing several separate indicators, the user receives one coherent panel that shows both the details of individual metrics and their final assessment.
The result is a tool that allows multidimensional volume analysis – from short-term buying and selling pressure, through relative market activity strength and capital flow, to the evaluation of signal agreement and the detection of potential signs of trend exhaustion.
█ CONCEPTS
Delta Oscillator
Delta Oscillator is the main module of the indicator and is responsible for assessing the direction of buying and selling pressure. Instead of using real delta from the futures market, it uses approximate directional volume calculated from the relationship between the candle's open and close, scaled by the candle's total range. The values are then accumulated and smoothed, creating an oscillator that shows the dominance of one side of the market.
Delta primarily answers the question:
Is buying or selling pressure currently dominant?
Relative Volume (RVOL)
RVOL compares current volume with its historical average, showing whether market activity is average, elevated or extreme.
The direction of a price move alone says little without information about the strength of market participation. RVOL allows impulses supported by high activity to be distinguished from moves that occur on low volume.
RVOL answers the question:
Is the current move taking place on sufficiently high volume?
Chaikin Money Flow (CMF)
CMF analyzes capital flow by taking into account both volume and the position of the close within the candle’s range.
Unlike Delta, which measures short-term directional pressure, CMF shows whether capital is actually flowing into or out of the instrument. This allows it to confirm or challenge signals generated by the other modules.
CMF answers the question:
Is money actually flowing into the market?
Volume Efficiency / Climax
High volume does not always lead to a large price move. Sometimes the market generates very high activity while the price remains almost motionless.
The Volume Efficiency module identifies exactly these situations by comparing the size of the price move with volume and filtering them relative to ATR. High volume with low efficiency may indicate absorption or the final phase of an impulse.
This is an informational module that provides additional context but does not affect the final Flow Confluence score.
Weis Wave
Weis Wave presents the direction of the dominant market wave instead of analyzing individual candles.
The module uses ATR-based volatility to determine moments of direction change and displays a subtle background that shows the currently dominant wave.
It answers the question:
What is the broader direction of market movement?
Flow Confluence
Flow Confluence is the most important element of the entire indicator.
It is not another oscillator, but analyzes the agreement of all the remaining modules. Delta, Delta direction, RVOL, CMF level, CMF direction and Weis Wave cast votes for the buying or selling side. Each component has its own weight, so the user can decide which elements should have the greatest importance.
The Flow Confluence table shows both the number of agreeing modules and the final point score. Signals appear only when the obtained score exceeds the defined threshold.
Flow Confluence answers the question:
Do all volume analysis methods point in the same direction?
Divergence Detection
The final layer is the analysis of divergences between price and the Delta oscillator.
If price makes a new extreme while Delta does not confirm the move, this may indicate weakening pressure from one side of the market and increase the probability of a correction or trend reversal.
Divergences serve a warning function and provide additional context when interpreting the other modules.
Why combine multiple volume tools?
Each method analyzes a different aspect of volume flow:
• Delta → Who currently dominates – buyers or sellers?
• RVOL → Is market activity high enough?
• CMF → Is capital actually flowing in or out?
• Volume Efficiency → Does volume translate into price movement, or is it being absorbed?
• Weis Wave → What is the dominant direction of the broader wave?
• Flow Confluence → Do all modules confirm the same scenario?
• Divergences → Is price starting to diverge from volume?
█ FEATURES
Oscillator Settings
• Show Delta Oscillator – displays the main Delta oscillator together with gradient fill. Hiding the oscillator does not disable its calculations – the module continues to participate in the Flow Confluence scoring.
• Cumulative Delta Length – number of bars used to calculate cumulative directional volume.
• Smoothing Length (EMA) – length of the EMA that smooths the Delta oscillator. Higher values produce a smoother but slower-reacting oscillator.
• Delta Area Gradient Transparency – sets the transparency of the fill between the Delta oscillator and the zero level.
RVOL Settings
• Show RVOL Histogram – displays the Relative Volume histogram. Hiding the histogram does not disable calculations – RVOL continues to feed the Climax and Flow Confluence modules.
• RVOL Average Length – number of bars used to calculate the average reference volume.
• Threshold – Weak – level above which volume is considered slightly elevated.
• Threshold – Medium – medium-high volume level. It is also used by the Flow Confluence scoring.
• Threshold – Strong – defines the strong Relative Volume level.
• Threshold – Extreme – defines the exceptionally high volume level used for the strongest histogram highlighting.
CMF Settings
• Show CMF – displays the Chaikin Money Flow wave above the overbought level and below the oversold level.
• CMF Period – number of bars used for Chaikin Money Flow calculations.
• CMF Gradient Transparency – sets the transparency of the CMF wave gradient fill.
Volume Efficiency
• Show Climax / Absorption Markers – displays markers on candles where very high volume did not translate into a correspondingly large price move, which may indicate absorption or culmination of activity.
• Efficiency Normalization Period – number of bars used to normalize volume efficiency.
• RVOL Threshold for Climax / Absorption – minimum Relative Volume required to classify a candle as potential absorption.
• Max Normalized Efficiency – maximum allowed price move efficiency. Lower values result in more selective absorption detection.
• Max Candle Range relative to ATR – prevents large impulsive candles from being marked as absorption by limiting their maximum range relative to ATR.
Weis Wave – Oscillator Background
• Highlight background by Weis Wave direction – colors the pane background according to the direction of the current Weis Wave.
• ATR Length – ATR period used to determine the minimum move required to change wave direction.
• ATR Multiplier – determines how large a price move is required to reverse the Weis Wave direction.
• Highlight Transparency – transparency of the Weis Wave background.
• Highlight Height – height of the highlighted area above the overbought level or below the oversold level.
Divergence Settings
• Enable Divergence Detection – activates detection of divergences between price and the Delta oscillator.
• Pivot Length (Left / Right) – number of bars required to confirm local pivots used when searching for divergences.
Threshold Levels
• Overbought Threshold – defines the Delta oscillator level considered market overbought.
• Oversold Threshold – defines the Delta oscillator level considered market oversold.
• OB/OS Line Width – thickness of the overbought and oversold level lines.
• OB/OS Gradient Transparency – Close to Level – sets line visibility when the oscillator is near the level.
• OB/OS Gradient Transparency – Far From Level – sets line visibility when the oscillator is far from the level.
Flow Confluence
• Show Flow Confluence Table – displays the table summarizing all modules participating in the scoring.
• Table Position – sets the position of the table on the chart.
• Table Text Size – sets the font size.
Flow Confluence – Weights
Each module can receive its own weight that determines its influence on the final point score.
• Weight: Delta Oscillator – points awarded for the oscillator position relative to the zero level.
• Weight: Delta Direction – points awarded for the rise or fall of the Delta oscillator.
• Weight: RVOL – points awarded when Relative Volume exceeds the medium threshold in line with candle direction.
• Weight: CMF Level – points awarded for confirmation of positive or negative capital flow.
• Weight: CMF Direction – points awarded for accelerating or weakening capital flow.
• Weight: Weis Wave – points awarded for agreement with the direction of the current Weis Wave.
Flow Confluence – Signals
• Enable Flow Confluence Signal – displays BUY and SELL diamonds after the score exceeds the defined threshold.
Signals appear while the candle is still forming, but due to price fluctuations they may also disappear during that time. The signal becomes permanent and does not disappear only after the candle closes.
• Minimum score for a signal – minimum number of points required to generate a signal.
• Signal only on first occurrence – prevents multiple signals from being displayed while the same condition remains active.
• Buy Signal Color – color of the bullish diamonds.
• Sell Signal Color – color of the bearish diamonds.
Colors
• Zero Line – color of the Delta oscillator zero level.
• Bullish Color – main color used by all positive elements of the indicator.
• Bearish Color – main color used by all negative elements of the indicator.
█ APPLICATIONS
Assessing the quality of market moves
The primary use of the indicator is to evaluate whether the current price move is truly supported by volume. By analyzing several independent metrics the user receives a much more complete picture than when using a single volume indicator.
Filtering weak impulses
Not every dynamic price move is backed by adequate volume. Volume Forge helps distinguish impulses supported by real market activity from moves that occur with weak volume confirmation.
Detecting volume absorption
The Climax module identifies situations in which very high volume does not translate into a correspondingly large price move. This may indicate order absorption by larger market participants, profit-taking or gradual exhaustion of the impulse.
Confirming trend direction
Simultaneous analysis of Delta, CMF and Weis Wave makes it possible to determine whether the dominant market direction is confirmed by different aspects of volume flow.
Detecting potential reversals
Divergences between price and the Delta oscillator can signal weakening buying or selling pressure even before a clear trend change appears.
Building a custom volume analysis model
Thanks to the ability to individually weight each module, the user can create their own market assessment model. For example, one trader may place greater emphasis on Delta and RVOL, while another may consider CMF and Weis Wave more important elements of their strategy.
█ NOTES
• Hiding a given module affects only its display. Calculations continue to run in the background and remain available to the Flow Confluence system.
• The Climax / Absorption module is purely informational and does not participate in the final scoring.
• Divergences indicate a discrepancy between price and the Delta oscillator and should be treated as a warning signal, not an automatic reversal signal.
• Flow Confluence signals are best used as a confirming element of market analysis together with structure, price action, support and resistance zones, momentum or other technical analysis tools.
• All module weights are fully configurable, allowing the user to adapt the volume assessment model to their own trading style while retaining the same multi-layered volume flow analysis logic.
Open-source script
In true PulseWire 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 PulseWire. Read more in the Terms of Use.
Open-source script
In true PulseWire 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 PulseWire. Read more in the Terms of Use.