OPEN-SOURCE SCRIPT
CVD_Behav_V3
Here is a comprehensive English explanation of the **CVD Pro: Institutional Behavior Panorama V3.0** indicator for PulseWire.
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## CVD Pro: Institutional Behavior Panorama V3.0 – User Guide
### 1. Overview & Core Logic
This indicator is designed to **detect institutional (whale) activity** by combining **CVD (Cumulative Volume Delta)** with price position, volume purity, and slope analysis. It visualizes accumulation, distribution, attacks, absorption, churn, and momentum exhaustion in real time.
**Core Calculation:**
- **CVD** = cumulative sum of (buy volume – sell volume) estimated from intra-bar price action.
- **Normalized CVD** = (raw CVD – 50‑period SMA) / 50‑period stdev → z‑score for cross‑asset comparability.
- **Acceleration** = weighted change of CVD, multiplied by volume factor to filter noise.
**Three‑dimensional validation** ensures signals are meaningful:
1. **Price position** – relative to 100‑period high/low (bottom 30% / top 30%).
2. **Volume purity** – volume > 1.5× its 20‑period average (adjustable), but not extreme (>5×) to avoid outliers.
3. **Slope comparison** – 20‑period linear regression slopes of price and CVD.
---
### 2. Chart Signals (Overlay on Price)
| Symbol | Color / Shape | Meaning | Action |
|--------|---------------|---------|--------|
| **吸** (Accumulate) | Green label below bar | Price falling but CVD rising – smart money buying in a downtrend. | Light long, stop below signal low. |
| **发** (Distribute) | Red label above bar | Price rising but CVD falling – smart money selling into strength. | Reduce or exit longs; do not chase. |
| **攻** (Attack) | Purple triangle below bar | Price & CVD both rising, CVD slope > 0.5× price slope – genuine breakout with real volume. | Aggressive entry on breakout, stop below signal low. |
| **托** (Support) | Blue dot below bar | Price near 20‑day low, CVD stabilises – large passive bids absorbing selling. | Short‑term bounce play, but light position. |
| **换** (Absorption) | Orange diamond below bar | Narrow range (width <3%) with CVD surging – accumulation within a consolidation, often a handover between institutions. | Accumulation zone; wait for breakout above range high. |
| **对倒** (Churn) | Maroon triangle above bar | Price spikes (>1% slope) but CVD flat/declining – fake breakout via wash trading. | Avoid chasing; tighten stops on existing positions. |
| **减速** (Slowdown) | Yellow arrow above bar | After an “Attack”, acceleration declines for 3 bars – momentum fading. | Do not add; consider partial exit. |
| **B** (Bullish Divergence) | Green “B” below bar | Price makes new low, CVD does not – potential reversal. | Watch for confirmation with support. |
| **S** (Bearish Divergence) | Fuchsia “S” above bar | Price makes new high, CVD does not – potential top. | Reduce risk; tighten stops. |
---
### 3. Sub‑Chart (Lower Panel) – CVD & Acceleration
- **Purple line** – Normalized CVD (z‑score). Up = net buying, down = net selling.
- **Yellow line (fast)** – 5‑period EMA of normalized CVD.
- **Blue line (slow)** – 20‑period EMA of normalized CVD.
- **Golden cross (fast > slow)** = institutional thrust increasing (bullish).
- **Death cross (fast < slow)** = institutional thrust decreasing (bearish).
- **Red / Green histogram** – CVD acceleration (weighted).
- **Green & growing** = institutional acceleration (momentum increasing).
- **Red & growing** = deceleration (momentum decreasing).
- *Height reflects the strength of the change.*
---
### 4. Multi‑Timeframe Dashboard (Top‑Left Corner)
Displays the **fast vs slow CVD status** for 15m, 1h, 4h, and Daily:
- 🟢 Green dot = CVD fast > slow (bullish trend on that timeframe).
- 🔴 Red dot = CVD fast < slow (bearish trend).
**Position sizing guide:**
- All green → heavy (conviction).
- One red, three green → light.
- All red → stay in cash or short.
---
### 5. Step‑by‑Step Trading Workflow
1. **Set the macro bias** – Check the background colour:
- **Light green** = price above 200‑EMA → only long signals are valid.
- **Light red** = price below 200‑EMA → only short signals (or no signals) are valid.
- *Ignore counter‑trend signals.*
2. **Assess the dashboard** – Confirm the multi‑timeframe trend. All green → high confidence; mixed → reduce position size.
3. **Look for behaviour labels** that align with the macro trend:
- In a green background: **攻**, **吸**, or **换** are actionable buy signals.
- In a red background: ignore all buy labels.
4. **Monitor acceleration and divergences** for risk management:
- **S** or **减速** → tighten stops or take partial profits.
- **B** → watch for a possible reversal, but wait for confirmation.
---
### 6. Parameter Tuning Recommendations
| Parameter | Default | When to Adjust |
|-----------|---------|----------------|
| **Fast MA Length** | 5 | Lower (3) for more sensitivity (scalping); higher (13) for smoother signals (swing). |
| **Slow MA Length** | 20 | Increase for less frequent crossovers; decrease for earlier signals. |
| **Lookback (Position)** | 100 | Increase to 200 for stricter “bottom/top” definition on weekly charts. |
| **Volume Threshold** | 1.5 | Raise to 2.0 for crypto/futures to reduce noise; lower to 1.2 for stocks. |
| **EMA Period (Trend)** | 200 | Use 50 for short‑term trend; 200 for long‑term. |
| **Show options** | All true | Toggle off CVD, MA, or acceleration for cleaner view. |
---
### 7. Alerts (Notifications)
The indicator provides **one‑time alerts** (on first occurrence) for:
- High‑confidence Attack / Accumulate / Distribute
- Absorption (range accumulation)
- Bullish / Bearish divergence
- Momentum slowdown
- Churn (fake breakout)
**Set up alerts** via the PulseWire alarm dialog – select the condition and enable push notifications.
---
### 8. Important Risk Disclaimers
- **Data limitations** – CVD is estimated from OHLC data, not tick‑by‑tick order flow. The indicator is a **tool for analysis, not a guaranteed predictor**.
- **Lag** – Signals appear 1‑2 bars after the actual event. Always combine with price action (support/resistance, candlestick patterns).
- **False signals** – Especially in low timeframes (<15 min). Use higher timeframes for reliability.
- **Backtesting** – Past performance does not guarantee future results. Always paper‑trade first.
- **Stop‑loss** – For any signal, place your stop **below the signal bar’s low** (for longs) or **above its high** (for shorts). Never trade without a stop.
---
### 9. Quick Reference Card
| You see... | Background | Dashboard | Action |
|------------|------------|-----------|--------|
| **攻** + green acceleration | Light green | All green | Aggressive long |
| **吸** | Light green | Mixed green/red | Light long, scale in |
| **换** | Light green | Any | Accumulate, wait for breakout |
| **对倒** or **减速** | Any | Any | Tighten stops, do not add |
| **发** or **S** | Light red | Mostly red | Short or exit longs |
| **B** | Light red | Red | Wait; do not buy yet |
---
### 10. Final Words
This indicator transforms raw volume and price data into **actionable institutional footprints**. It does not replace your own judgment but provides an objective framework to **filter noise, confirm trends, and manage risk**.
Use it with discipline – always combine signals with proper risk management and your own market context.
Happy trading! 📈
---
## CVD Pro: Institutional Behavior Panorama V3.0 – User Guide
### 1. Overview & Core Logic
This indicator is designed to **detect institutional (whale) activity** by combining **CVD (Cumulative Volume Delta)** with price position, volume purity, and slope analysis. It visualizes accumulation, distribution, attacks, absorption, churn, and momentum exhaustion in real time.
**Core Calculation:**
- **CVD** = cumulative sum of (buy volume – sell volume) estimated from intra-bar price action.
- **Normalized CVD** = (raw CVD – 50‑period SMA) / 50‑period stdev → z‑score for cross‑asset comparability.
- **Acceleration** = weighted change of CVD, multiplied by volume factor to filter noise.
**Three‑dimensional validation** ensures signals are meaningful:
1. **Price position** – relative to 100‑period high/low (bottom 30% / top 30%).
2. **Volume purity** – volume > 1.5× its 20‑period average (adjustable), but not extreme (>5×) to avoid outliers.
3. **Slope comparison** – 20‑period linear regression slopes of price and CVD.
---
### 2. Chart Signals (Overlay on Price)
| Symbol | Color / Shape | Meaning | Action |
|--------|---------------|---------|--------|
| **吸** (Accumulate) | Green label below bar | Price falling but CVD rising – smart money buying in a downtrend. | Light long, stop below signal low. |
| **发** (Distribute) | Red label above bar | Price rising but CVD falling – smart money selling into strength. | Reduce or exit longs; do not chase. |
| **攻** (Attack) | Purple triangle below bar | Price & CVD both rising, CVD slope > 0.5× price slope – genuine breakout with real volume. | Aggressive entry on breakout, stop below signal low. |
| **托** (Support) | Blue dot below bar | Price near 20‑day low, CVD stabilises – large passive bids absorbing selling. | Short‑term bounce play, but light position. |
| **换** (Absorption) | Orange diamond below bar | Narrow range (width <3%) with CVD surging – accumulation within a consolidation, often a handover between institutions. | Accumulation zone; wait for breakout above range high. |
| **对倒** (Churn) | Maroon triangle above bar | Price spikes (>1% slope) but CVD flat/declining – fake breakout via wash trading. | Avoid chasing; tighten stops on existing positions. |
| **减速** (Slowdown) | Yellow arrow above bar | After an “Attack”, acceleration declines for 3 bars – momentum fading. | Do not add; consider partial exit. |
| **B** (Bullish Divergence) | Green “B” below bar | Price makes new low, CVD does not – potential reversal. | Watch for confirmation with support. |
| **S** (Bearish Divergence) | Fuchsia “S” above bar | Price makes new high, CVD does not – potential top. | Reduce risk; tighten stops. |
---
### 3. Sub‑Chart (Lower Panel) – CVD & Acceleration
- **Purple line** – Normalized CVD (z‑score). Up = net buying, down = net selling.
- **Yellow line (fast)** – 5‑period EMA of normalized CVD.
- **Blue line (slow)** – 20‑period EMA of normalized CVD.
- **Golden cross (fast > slow)** = institutional thrust increasing (bullish).
- **Death cross (fast < slow)** = institutional thrust decreasing (bearish).
- **Red / Green histogram** – CVD acceleration (weighted).
- **Green & growing** = institutional acceleration (momentum increasing).
- **Red & growing** = deceleration (momentum decreasing).
- *Height reflects the strength of the change.*
---
### 4. Multi‑Timeframe Dashboard (Top‑Left Corner)
Displays the **fast vs slow CVD status** for 15m, 1h, 4h, and Daily:
- 🟢 Green dot = CVD fast > slow (bullish trend on that timeframe).
- 🔴 Red dot = CVD fast < slow (bearish trend).
**Position sizing guide:**
- All green → heavy (conviction).
- One red, three green → light.
- All red → stay in cash or short.
---
### 5. Step‑by‑Step Trading Workflow
1. **Set the macro bias** – Check the background colour:
- **Light green** = price above 200‑EMA → only long signals are valid.
- **Light red** = price below 200‑EMA → only short signals (or no signals) are valid.
- *Ignore counter‑trend signals.*
2. **Assess the dashboard** – Confirm the multi‑timeframe trend. All green → high confidence; mixed → reduce position size.
3. **Look for behaviour labels** that align with the macro trend:
- In a green background: **攻**, **吸**, or **换** are actionable buy signals.
- In a red background: ignore all buy labels.
4. **Monitor acceleration and divergences** for risk management:
- **S** or **减速** → tighten stops or take partial profits.
- **B** → watch for a possible reversal, but wait for confirmation.
---
### 6. Parameter Tuning Recommendations
| Parameter | Default | When to Adjust |
|-----------|---------|----------------|
| **Fast MA Length** | 5 | Lower (3) for more sensitivity (scalping); higher (13) for smoother signals (swing). |
| **Slow MA Length** | 20 | Increase for less frequent crossovers; decrease for earlier signals. |
| **Lookback (Position)** | 100 | Increase to 200 for stricter “bottom/top” definition on weekly charts. |
| **Volume Threshold** | 1.5 | Raise to 2.0 for crypto/futures to reduce noise; lower to 1.2 for stocks. |
| **EMA Period (Trend)** | 200 | Use 50 for short‑term trend; 200 for long‑term. |
| **Show options** | All true | Toggle off CVD, MA, or acceleration for cleaner view. |
---
### 7. Alerts (Notifications)
The indicator provides **one‑time alerts** (on first occurrence) for:
- High‑confidence Attack / Accumulate / Distribute
- Absorption (range accumulation)
- Bullish / Bearish divergence
- Momentum slowdown
- Churn (fake breakout)
**Set up alerts** via the PulseWire alarm dialog – select the condition and enable push notifications.
---
### 8. Important Risk Disclaimers
- **Data limitations** – CVD is estimated from OHLC data, not tick‑by‑tick order flow. The indicator is a **tool for analysis, not a guaranteed predictor**.
- **Lag** – Signals appear 1‑2 bars after the actual event. Always combine with price action (support/resistance, candlestick patterns).
- **False signals** – Especially in low timeframes (<15 min). Use higher timeframes for reliability.
- **Backtesting** – Past performance does not guarantee future results. Always paper‑trade first.
- **Stop‑loss** – For any signal, place your stop **below the signal bar’s low** (for longs) or **above its high** (for shorts). Never trade without a stop.
---
### 9. Quick Reference Card
| You see... | Background | Dashboard | Action |
|------------|------------|-----------|--------|
| **攻** + green acceleration | Light green | All green | Aggressive long |
| **吸** | Light green | Mixed green/red | Light long, scale in |
| **换** | Light green | Any | Accumulate, wait for breakout |
| **对倒** or **减速** | Any | Any | Tighten stops, do not add |
| **发** or **S** | Light red | Mostly red | Short or exit longs |
| **B** | Light red | Red | Wait; do not buy yet |
---
### 10. Final Words
This indicator transforms raw volume and price data into **actionable institutional footprints**. It does not replace your own judgment but provides an objective framework to **filter noise, confirm trends, and manage risk**.
Use it with discipline – always combine signals with proper risk management and your own market context.
Happy trading! 📈
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.