Price and Delivery Analysis

Price & Delivery AnalysisOverviewThis script provides a simple yet effective way to visualize the relationship between price movement and trading volume (interpreted as "delivery"). By analyzing the confluence or divergence between price and volume on a candle-by-candle basis, traders can get at-a-glance insights into market conviction and potential turning points.The indicator plots distinct labels on the chart to signal four different scenarios, helping you quickly identify patterns of accumulation, distribution, and trend strength or weakness.How It WorksThe script evaluates two simple conditions for each new candle:Did the price increase or decrease compared to the previous candle?Did the volume (delivery) increase or decrease compared to the previous candle?Based on the outcome, it plots one of four labels:X (Green, above candle): Price Increased & Delivery IncreasedIndication: Strong bullish conviction. This suggests that the upward price move is well-supported by high trading activity, signaling a potentially strong trend.X1 (Red, below candle): Price Increased & Delivery DecreasedIndication: Weakening bullish momentum. The price is rising, but on lower volume. This could be a warning sign that the uptrend is losing steam and may be due for a reversal or consolidation.Z (Blue, above candle): Price Decreased & Delivery IncreasedIndication: Strong bearish conviction. The downward price move is backed by high volume, suggesting strength in the downtrend.Z1 (Orange, below candle): Price Decreased & Delivery DecreasedIndication: Weakening bearish momentum. The price is falling, but on lower volume. This may signal that the selling pressure is easing, and the downtrend could be nearing its end.How to UseAdd the "Price and Delivery Analysis" indicator to your chart.Observe the labels (X, X1, Z, Z1) as they appear in real-time or on historical data.Use these signals as a supplementary tool alongside your existing trading strategy to confirm trends, spot divergences, and identify potential reversals. For example, a series of 'X1' labels during an uptrend might prompt you to tighten your stop-loss or look for bearish confirmation.Disclaimer: This indicator is a tool for analysis and should not be used as a standalone trading signal. Always use proper risk management and combine it with other forms of analysis.