Cumulative Volume Delta (CVD) - Session & Multi-Day ResetsOverview
The Cumulative Volume Delta (CVD) is a powerful order flow tool designed to measure the net difference between buying and selling pressure. By aggregating intrabar volume data, this indicator provides a transparent view of market participation, helping traders identify whether aggressive buyers or aggressive sellers are in control of the tape.
Unlike standard volume bars that only show total activity, CVD reveals the directional intent behind the volume.
Key Features & Innovation
This script brings advanced reset mechanics to your CVD analysis, anchoring calculations specifically to Regular Trading Hours (RTH) to filter out low-liquidity overnight noise.
It features three customizable reset modes:
Daily Reset: Resets the cumulative delta back to zero at the exact open of the exchange's regular session every day.
Weekly Reset: Tracks cumulative delta throughout the week, resetting only on the first regular session bar of the new week.
N-Days Reset: Allows you to input a custom number of days (e.g., 2, 3, or 5 days). The indicator will accumulate delta for that duration and reset precisely on the RTH open of the Nth day.
How it Works (The Math Under the Hood)
Because true Bid/Ask volume data is not natively accessible via standard feeds, this script uses PulseWire's request.security_lower_tf() function to approximate delta at the highest possible resolution.
Intrabar Polling: By default, it reaches down to the 1-second (1S) timeframe.
Tick Logic: It evaluates every 1-second bar. If the close is higher than the previous close, the volume is classified as "Buying Volume" (positive delta). If the close is lower, it is classified as "Selling Volume" (negative delta).
Aggregation: It collects all 1-second deltas that occurred inside your chart's current candle and sums them up.
Accumulation: It adds the current candle's total delta to the running total (CVD), resetting only when your chosen temporal condition (Daily, Weekly, N-Days) is met via the session.isfirstbar_regular function.
How to Use CVD in Your Trading
Trend Confirmation: During a healthy uptrend, price action should be accompanied by a rising, positive CVD. This confirms that aggressive buyers are supporting the move.
Spotting Divergences: If price makes a new Higher High, but the CVD makes a Lower High (or remains negative), this indicates buying exhaustion. The move upward is lacking aggressive volume support and may reverse.
Identifying Absorption: If price is stuck in a tight consolidation range while the CVD is aggressively dropping (heavy selling), it suggests passive buyers are using limit orders to absorb the selling pressure. This can often precede a sharp reversal upward.
Important Data Limitations (Please Read)
PulseWire enforces a strict limit of 100,000 historical intrabars for the request.security_lower_tf() function.
Because this indicator uses the 1-Second timeframe by default to ensure maximum accuracy, historical CVD data will only render for roughly the last ~27 hours of active market time.
Need more history? If you are swing trading or viewing higher timeframes (like the 1H or 4H chart) and need days/weeks of historical data, simply open the indicator settings and change the Lower Timeframe input from 1S to 15S, 1 (1-minute), or 3 (3-minute). This reduces tick granularity but dramatically increases your historical lookback period.
Disclaimer: This script is provided for educational purposes only. Order flow and volume delta should be used in conjunction with price action and other forms of analysis. It is not a standalone trading system. Indicator
Large Lot Reverse Engineer [JOAT]LARGE LOT REVERSE ENGINEER
A regression-driven block-trade detector that infers the implied size of an off-tape institutional order from the residual between price movement and volume — and turns that residual into an estimated lot count. The premise is straightforward: when a single large order moves price meaningfully more than the visible volume would justify, the gap is the size of the hidden order that absorbed the move. Large Lot Reverse Engineer models that relationship, flags the outliers, and estimates the size.
The core idea — what price movement is "worth"
In normal conditions there is a stable statistical relationship between volume and the magnitude of a bar's return. A rolling regression over a configurable window (default 60 bars) estimates expected volume as a function of return — i.e., for the move you just saw, how much volume should there have been?
The residual is the difference between actual and expected volume, Z-normalised by its own rolling stdev. Two signs of residual matter:
Implied block (residual Z ≥ +threshold) — more volume traded than the price move warrants. Someone large was on the passive side absorbing aggression. The direction of the bar tells you which side.
Thin market (residual Z ≤ −threshold) — price moved on suspiciously low volume. Liquidity was missing; the move was a low-conviction air-pocket.
Both reads are institutionally interesting. The first identifies absorbed-aggression — the textbook signature of an institutional block trade. The second identifies regimes where price prints are unreliable.
R² reliability gate
A regression is only meaningful when the underlying relationship is actually there. The script computes the rolling R² of the model and exposes a configurable minimum (default 0.10). When R² falls below the gate the model is considered unreliable; the dashboard cell turns warning-coloured and the script tags any signals fired in that regime as low-confidence. This is the difference between a real residual reading and a noise residual — a professional read forbids the same.
Significant block sizing
Three thresholds are stacked:
Implied Block Sigma (+) (default 2.0σ) — baseline implied-block trigger.
Thin Market Sigma (−) (default 2.0σ) — baseline thin-market trigger.
Significant Block Sigma (default 3.0σ) — above this the bar is rendered with a polygon glyph and gets an estimated lot-size badge . Empirical scaler converts residual-volume into a lot count.
The size unit is configurable: Shares/Coins for spot instruments, Notional USD for size in dollars (using a configurable price proxy), or Auto which picks based on instrument. The scaler is exposed because no single conversion factor is universally correct — calibrate to your instrument's typical notional.
Cluster detection
When N blocks fire inside a rolling window (configurable, default 3 in 5 bars) the Block Cluster alert fires. Cluster signals are the strongest read this script produces — they indicate sustained off-tape activity, not a single statistical outlier.
Visual system
Residual Z histogram — bars coloured bull/bear by direction, magnitude by residual.
Threshold lines at ±2 and ±3 with on/off toggle.
Zero line and significant-block polygon glyphs.
Thin-market dots in the muted palette.
Background recency fade — fresh blocks tint the background and decay to transparent over a configurable number of bars.
Cumulative implied delta (optional) — running sum of implied-block directional contributions, useful for reading sustained institutional bias.
A locked Carbon palette (neon green / neon red / white midline on carbon black) gives the pane an institutional terminal feel.
Dashboard
Monospaced table, positionable to any of nine corners, with a compact mode and optional legend footer. Surfaces:
Current residual Z value and sign.
R² value with reliability colour-coding (green / amber / red).
Last significant block direction with estimated lot size.
Block count and thin-market count in the recent window.
Cluster status with bars-since-last-cluster.
Cumulative implied delta (when enabled).
Alerts
Four alert conditions, each independently controllable:
Implied Buy Block (positive residual + up bar)
Implied Sell Block (positive residual + down bar)
Thin Market Event (negative residual)
Block Cluster (N-in-window)
How to read it
Three reads, in order of conviction:
Block Cluster + high R² — the highest-conviction read. Multiple statistically-significant blocks inside a window, with the underlying model reliable. Institutional flow is actively moving size.
Significant block (3σ+) at a known level — a single large polygon glyph at a key support/resistance is a textbook absorbed-print read. The lot-size badge gives you a magnitude proxy you can compare across bars.
Thin market warning — when the residual goes deeply negative, treat any move you see with extreme caution; the tape is hollow. Often precedes either a violent move once real flow returns or a fade back to fair value.
Suggested settings
Defaults (60-bar window, R² ≥ 0.10, ±2σ block, +3σ significant) are tuned for 5m–1H on liquid futures, FX, and large-cap equity. For lower timeframes drop the window to 30 and raise the sigma thresholds to 2.5σ / 3.5σ to filter noise. For daily and above, widen the window to 100+ and consider log returns for instruments with large price scales.
Originality
The implementation — the rolling return-vs-volume regression with R² gate, the residual-Z classifier with bidirectional thresholds, the empirical lot-size scaler with auto/notional unit switching, the polygon-glyph significant-block render, the thin-market dot variant, the N-in-window cluster trigger, the recency-fade background, and the cumulative implied delta — is JOAT-original. No third-party code reused. The "volume that should have been" inference pattern is well-known to institutional desks; the implementation here is purpose-built for chart-based bar data.
Limitations
Implied block size is an inference from residual statistics, not a direct read of off-tape trades. Pine cannot see actual block prints that occur away from the lit market; what the script flags is the visible footprint those prints leave behind. The lot-size badge depends on the empirical scaler, which must be calibrated per instrument — the default 1.0× is generic. The R² gate is the most important reliability filter; when R² is low, no signal in the model should be considered reliable, by construction.
-made with passion by jackofalltrades
Indicator
Tension Flow RR [JOAT]TENSION FLOW RR
A trend-signal engine wrapped in a full risk-reward execution layer — Hull Moving Average baseline, Z-score normalised tension reading, ATR-sized stops and targets, optional R-multiple-triggered trailing stop, and a rolling-window backtest that tracks every closed trade and reports win rate / cumulative R / equity sparkline directly on the chart. Built for traders who care about what happens after the signal fires , not just the signal itself.
Trend signal — HMA + Z-score tension
Two cleanly chosen primitives:
Hull Moving Average (HMA) — a chained-WMA construct that delivers a fast, low-lag trend baseline. The square-root final smoothing step is what makes it noticeably less laggy than EMA at the same length.
Z-score of (close − HMA) — the residual is normalised by its own rolling stdev so the tension reading is dimensionless and comparable across instruments. |Z| above the overextended threshold (default 2.0) tags the move as overextended in the Energy Dashboard.
A new trend signal fires when the configured signal cooldown has elapsed and the directional logic flips. The signal is non-repainting (confirmed on bar close).
ATR-sized stops and targets
Each signal automatically renders:
SL box — a translucent box sized at SL-ATR × multiplier (default 2.0 × ATR-200) from entry, drawn in the bear colour.
TP box — sized at SL distance × Risk:Reward ratio (default 1.0R), drawn in the bull colour.
Trailing-stop line (optional, JOAT enhancement) — when enabled and price moves more than the activation threshold (in R-multiples) in your favour, the stop ratchets behind price by Trail-ATR × multiplier. Configurable bar-by-bar trail step, optional break-even lock at activation.
This is full execution geometry — you can see entry, stop, target, and the trail's path on the chart at all times.
Rolling-window backtest (the headline)
The script tracks the last N closed trades (configurable, default 100) and produces live performance statistics that update tick-by-tick:
Total trades, wins, losses, breakevens.
Win rate, with colour-coded cell — green above the configured "green" threshold, amber between, red below.
Average R per trade, best R, worst R.
Cumulative R since the start of the window.
Profit factor.
Expectancy in R-multiples.
Unicode equity sparkline — a compact in-cell chart of the last N cumulative-R points, drawn directly in the dashboard cells with block-character glyphs.
Trades are evicted FIFO when the history window is exceeded, so the win rate is always a rolling read of recent performance, not lifetime stats — which is the right read for a working trader.
Two dashboards
Energy Dashboard (Bottom-Right by default) — compact 22-row read of current Z-score, trend direction, HMA value, overextension flag, ribbon width, ATR, and signal state.
RR Performance Dashboard (Top-Right by default) — 29-row institutional read of the rolling backtest stats above, plus the equity sparkline.
Both are independently positionable, sizeable, and toggle-able. The split lets you run "engine state" on one corner and "PnL state" on the other without overlap.
Trend ribbon
The HMA is rendered with an ATR-band ribbon (configurable width) whose transparency is dynamically modulated by current Z-score — the ribbon visually breathes with tension. Toggle off if you prefer a clean line.
Alerts
Alert conditions are exposed for new signals, SL hits, TP hits, trailing-stop hits, overextension events, and two win-rate threshold alerts: Win-Rate High (crossover above the configured high level) and Win-Rate Low (crossunder below the configured low level). Win-rate alerts are suppressed until a minimum sample size has been recorded, so you do not get a 100% win-rate alert from a single lucky trade.
How to read it
The script is designed to be used as a closed loop:
Take the trend-start signal as the entry. The HMA + Z-score logic is the signal; the SL/TP boxes are the geometry.
If trailing is enabled, the line will appear once unrealised PnL exceeds the activation threshold and will ratchet from there.
When the trade closes, the rolling backtest updates — watch the win-rate colour and the cumulative-R sparkline.
If win-rate trips the low alert, that is the script telling you the current regime does not suit the current settings.
The cumulative-R sparkline is the most honest single line on the dashboard — if it is climbing, the engine is doing its job; if it is grinding flat or down, it isn't, and you should re-evaluate parameters or stand aside.
Suggested settings
Defaults (HMA 50, Z 50, 2.0 R-stop, 1.0 R-target) are calibrated for 1H–4H on liquid markets. For lower timeframes drop both lengths proportionally and consider a Risk:Reward above 1.0 to offset the higher signal frequency. For daily and above, raise lengths and lower the signal cooldown.
Originality / what's reused
HMA, Z-score, and ATR-sized stops are public-domain primitives, used here as building blocks. The implementation — the Z-normalised tension reading, the R-multiple activation trailing stop with break-even lock, the colour-coded rolling-N backtest, the Unicode equity sparkline rendered inside table cells, the dual-dashboard split, and the sample-gated win-rate alerts — is JOAT-original and tuned together. No third-party code reused.
Open source
Published open-source under the default Mozilla Public License 2.0. The execution geometry, the rolling-trade tracker, the Z-modulated ribbon, and the sparkline renderer are each isolated so you can adapt any one without reading the whole file. Forks welcome with credit.
Limitations
The rolling backtest is a descriptive read of recent signal performance under the current settings — it is not a predictive metric and changing the parameters resets the read. SL / TP geometry assumes a single position per signal direction; the script is not a position manager. Trailing stop fires on confirmed bars; intra-bar movement past the trail level is registered but the close determines the outcome.
—
-made with passion by jackofalltrades
Indicator
Orderflow Imbalance Pressure [JOAT]Orderflow Imbalance Pressure
Introduction
Orderflow Imbalance Pressure is an open-source indicator that estimates the imbalance between buying and selling pressure on each bar without access to real bid-ask data, derives a Z-score normalized delta oscillator from that estimate, tracks cumulative delta over the session, and detects structural divergences between price extremes and delta behavior at confirmed pivot points.
The core analytical insight is that when price reaches a new high while the cumulative buying pressure behind it is declining, the move is potentially unsupported — buyers are diminishing while the market is being pushed to new levels. Conversely, price making new lows while selling pressure contracts suggests exhaustion rather than conviction. These divergences are objectively measurable and provide leading context that price action alone does not.
Core Concepts
1. Delta Estimation from OHLC
True tick-level delta (bid volume minus ask volume) requires raw tick data. This indicator estimates it from bar data using the classic candle ratio method: buying pressure is proportional to how close the close is to the high, and selling pressure to how close it is to the low:
float buyVol = rng > 0.0 ? volume * (close - low) / rng : volume * 0.5
float sellVol = rng > 0.0 ? volume * (high - close) / rng : volume * 0.5
float delta = buyVol - sellVol
This is an approximation — not a substitute for real order flow data — but provides a directionally useful signal on instruments where tick data is unavailable.
2. Delta Z-Score Normalization
Raw delta varies in scale across instruments and volume conditions. The indicator normalizes delta by computing a rolling Z-score: the delta minus its period mean, divided by its period standard deviation. This produces a dimensionless oscillator centered at zero:
float deltaZ = deltaStd > 0.0 ? (delta - deltaMA) / deltaStd : 0.0
Extreme Z-score readings above +1.5 or below -1.5 indicate statistically significant delta imbalances relative to recent history.
3. Cumulative Delta
Delta values are accumulated across the session to track the net buying or selling bias since session open. The cumulative delta line is scaled and overlaid on the histogram for context. Session resets are configurable (None, Session, or Manual). The cumulative delta often reveals sustained institutional bias that individual bar delta obscures.
4. Imbalance Threshold Markers
When the delta ratio (delta divided by total volume) exceeds a configurable threshold (default 0.6 = 60% of volume in one direction), the bar is classified as an extreme imbalance. Triangle markers appear at these bars and the background is lightly tinted. Extreme imbalance bars often mark exhaustion points or momentum bursts.
5. Pivot-Confirmed Divergence Detection
Divergences are detected using confirmed structural pivots rather than rolling high/low lookbacks. A bullish divergence requires a confirmed pivot low that is lower than the prior confirmed pivot low, while the cumulative delta at that pivot is higher than at the prior one. This fires a signal only at genuine structural turning points — typically 5–10 signals per extended chart rather than hundreds:
if not na(pivotLow)
float dAtPivot = cumDelta
if pivotLow < lastPivLow and dAtPivot > lastPivLowDelta
bullDiv := true
Features
OHLC-based delta estimation: Buy and sell volume proxy from candle structure
Z-score normalized oscillator: Delta normalized by rolling mean and standard deviation
Gradient histogram: Bars colored by delta direction and magnitude intensity
Cumulative delta overlay: Net session delta as a scaled line on the oscillator
Session reset modes: None, Session boundary, or Manual reset options
Extreme imbalance markers: Triangle shapes at bars exceeding the delta ratio threshold
Pivot-confirmed divergences: Bull and bear divergences fired only at structural pivot points
Dashboard: Current delta, bias, buy volume, sell volume, cumulative delta, and Z-score
Six alert conditions: Bull/bear imbalance, bull/bear divergence, delta surge bull/bear
Input Parameters
Delta Engine:
Delta Smoothing EMA: Smoothing for delta oscillator line (default: 3)
Delta Normalization Length: Z-score rolling window (default: 20)
Imbalance Threshold: Delta ratio required for extreme marker (default: 0.6)
Cumulative Delta:
Show Cumulative Delta toggle
Reset Mode: None, Session, or Manual (default: Session)
Cumulative EMA Smooth: Smoothing for cumulative line (default: 5)
Signal Settings:
Delta Divergence Signal toggle
Divergence Lookback: Base period for pivot divergence detection (default: 20)
How to Use This Indicator
Step 1: Read the Delta Bias
Check the dashboard's Bias row. BUYING PRESSURE, SELLING PRESSURE, or BALANCED reflects the current delta ratio. Use this to understand whether the current bar's volume is dominated by buyers or sellers.
Step 2: Watch the Cumulative Delta Trend
A rising cumulative delta line during a price advance confirms the move is volume-supported. Declining cumulative delta during a price advance is a warning sign that buyers are weakening.
Step 3: Act on Divergence Signals
When a DIV label appears (bullish or bearish), a confirmed structural pivot has formed with a diverging cumulative delta. This is the primary signal output of the indicator — use it to anticipate potential turning points in price.
Step 4: Note Extreme Imbalance Bars
The triangle markers at extreme imbalance bars often coincide with momentum exhaustion (after a sustained run) or momentum ignition (at a breakout). Context determines which interpretation applies.
Indicator Limitations
OHLC delta estimation is a proxy; it does not capture true bid-ask imbalance and will systematically differ from actual order flow data
On instruments with wide spreads or gaps, the candle ratio delta estimation becomes less reliable
Divergences in strong trends often resolve with further trend continuation before the divergence is acted upon
Cumulative delta resets at session boundaries, so intraday and multi-day comparisons require switching reset modes
Originality Statement
The combination of OHLC delta estimation, Z-score normalization, cumulative session delta with configurable resets, and pivot-confirmed divergence detection — requiring structural pivot confirmation rather than rolling lookback extremes — in a single publication is the original contribution. The pivot-gated divergence detection specifically prevents the signal spam common in delta divergence tools that use rolling high/low comparisons.
Disclaimer
This indicator is provided for educational and informational purposes only. It is not financial advice. Delta estimation from OHLC data is an approximation. All signals are based on historical data and do not guarantee future results. Trading involves substantial risk of loss.
-Made with passion by jackofalltrades
Indicator
Tidal Divergence [JOAT]Tidal Divergence
Tidal Divergence is a composite divergence detector that lives in a sub-pane and projects high-conviction divergence visuals onto the price chart. The composite blends three volume-based oscillators — Money Flow Index, percentile-ranked Cumulative Volume Delta, and z-scored OBV rate-of-change — into a single normalized stream. Both regular and hidden divergences are detected. Persistent zones are drawn at divergence pivots, and zone mitigation is tracked with body / wick / rejection modes.
What makes it different
Single-oscillator divergence indicators give a single perspective. Tidal Divergence's composite triangulates three independent volume-derived oscillators so a divergence in the composite is supported by three volume readings instead of one.
Hidden divergences (continuation pattern: price higher low plus oscillator lower low for bull) are detected separately from regular divergences (reversal pattern), with distinct line styles on the price chart.
Each detected divergence creates a persistent demand or supply zone with optional FVG-confluence gating, dynamic alpha-by-age (zones fade as they age), and explicit mitigation logic (body / wick / two-close rejection variants).
A composite percentile envelope (5th to 95th percentile of the last 200 bars) is drawn behind the oscillator so absolute readings are easy to interpret in context.
How it works
MFI(14), daily-reset CVD then ta.percentrank(cvd, 100), OBV ROC z-score over a 20-bar mean / stdev. Three legs, each normalized to roughly the same scale.
Composite equals 0.40 times the normalized MFI plus 0.35 times the normalized CVD percentile plus 0.25 times the clamped OBV ROC z. Hull-smoothed and scaled to centi-percent.
Pivots are detected on the composite stream. A regular bull divergence requires a price lower low paired with a composite higher low within a 5-to-60-bar window. Hidden bull requires a price higher low plus composite lower low. Bear variants invert the conditions.
At each divergence pivot, two horizontal lines are drawn (edge equals lowest wick / highest wick. base equals lowest body / highest body), with a linefill between them, on the price chart via force_overlay=true.
Zone mitigation: body mode (close beyond edge) or wick mode (high/low beyond edge), optionally with two-close rejection requirement.
Optional FVG confluence requires a recent 3-bar Fair Value Gap before firing the divergence-final alert.
Reading the chart
In-pane : composite line tinted by direction with a smoothed signal line, gradient ribbon between them, breath-modulated zero midline, plus and minus 70 overbought / oversold thresholds, and the percentile envelope as an atmospheric backdrop.
In-pane divergence markers : regular divergences as solid connector plots, hidden divergences as broken (dashed-equivalent) connectors.
Cross-pane : price-to-price divergence connector lines on the price chart (regular solid, hidden dashed). Each line has a small REG BULL DIV 4520.50 or HID BEAR DIV label at the current pivot.
Cross-pane zone fills with age-graded transparency.
Zone edge price labels follow the right edge of each active zone.
Mitigation flash labels print at the bar where a zone is broken.
A cross-pane composite tint paints a soft mint / red background when the composite is clearly above or below plus or minus 30.
Signals
Regular bullish / bearish divergence
Hidden bullish / bearish divergence (continuation)
Bull / bear zone touch
Bull / bear zone mitigated
Bull / bear stack (three or more active zones plus a fresh regular divergence)
Bull / bear streak (composite above / below zero for N consecutive bars)
All gated on barstate.isconfirmed or barstate.ishistory. No future references. No lookahead_on.
Inputs
MFI : MFI length.
Divergence : pivot lookback left / right, detect hidden divergences toggle.
Zones : zone extreme length, max zone age, mitigation mode, allow-rejection toggle.
FVG Confluence : require FVG, FVG lookback bars.
Visual : bullish / bearish colors.
Cross-pane Visuals : divergence lines, divergence labels, zone edge labels, composite tint.
Dashboard : position, size.
How traders use this
Reversal entries : a regular bull divergence with the composite leaving an oversold extreme is a high-quality long setup, especially when accompanied by an FVG below the divergence price.
Continuation entries : a hidden bull divergence during a clearly trending bull regime is a structurally supported add-on entry on a pullback.
Zone trades : after a divergence prints, treat its zone as an active demand or supply level. Reactions to the zone (touch with rejection candles) are tradable. Mitigation invalidates the level.
Composite filter : only trade with the composite in agreement (composite above 0 for longs). The cross-pane tint helps you stay aligned without checking the pane.
Limitations
Divergence detection inherently lags the actual extreme by the right-pivot window.
Composite values are smoothed and need warm-up bars before they stabilize.
Cumulative Volume Delta is a tick-volume proxy, not true level-2 order flow.
A divergence is a probability, not a guarantee. Many divergences fail before completing their implied reversal.
Compatibility
Pine Script v6 open-source indicator (pane plus cross-pane). Any symbol with volume data. Cross-pane elements use force_overlay=true. No request.security calls.
Defaults
14-bar MFI, 14-left / 5-right pivot, body mitigation, FVG confluence off by default, mint / red palette, top-right medium dashboard. Enable FVG confluence to filter for higher-quality setups.
Indicator
HTF Delta Flux + Liquidations [BigBeluga]HTF Delta Flux + Liquidations is a high-timeframe order flow diagnostic tool that visualizes the internal volume dynamics of macro candles. By projecting Higher Timeframe (HTF) structures onto your current chart, it reveals the "Flux"—the movement of Cumulative Volume Delta—and identifies high-velocity volume spikes often associated with liquidations.
Unlike standard indicators that only show a candle’s open and close, this script breaks down the aggressive buying and selling that occurred inside the candle’s duration.
🔵 CONCEPTS
HTF Candle Boxes: Automatically draws the body and wicks of a higher timeframe (e.g., Daily or Weekly) over your intraday price action.
The Delta Flux Curve: An internal polyline that maps the path of Cumulative Volume Delta within the HTF candle. This allows you to see if a candle’s volume was "front-loaded" or "back-loaded."
Full Body Mode: A visual toggle that expands the candle box to cover the entire High-Low range, creating a "Liquidity Zone" view.
Cumulative Delta Dashboard: A real-time table tracking the last N HTF candles, displaying their directional bias, total delta, and the volume contributed by liquidation flushes.
🔵 THE SYNTHETIC LIQUIDATION ENGINE
It is important to note: This indicator does not use real-time exchange liquidation API data. Since PulseWire does not provide native exchange-level liquidation feeds for all symbols, this tool uses a Volume-Based Proxy to identify liquidation-like events.
How it works:
The engine monitors the rate of change in Volume Delta. When a volume spike exceeds a specific Standard Deviation threshold relative to recent activity, it identifies a "Liquidity Flush." In the market, these extreme, sudden bursts of volume often correlate with forced liquidations or stop-run cascades.
Circle Markers: Appear at the high or low of the bar where the flush occurred.
Volume Labels: Display the specific amount of aggressive delta that triggered the signal.
🔵 FEATURES
Customizable HTF Timeframe: Analyze Daily, Weekly, or even Monthly order flow on 1-minute or 5-minute charts.
Standard Deviation Sensitivity: Fine-tune the "Dev Threshold" to filter out minor volume noise and only highlight the most significant liquidity events.
Live Delta Tracking: The current "Live" candle displays a real-time count of the active delta flux.
Historical Bias Analysis: The dashboard calculates the average bias and liquidation volume over your selected history to identify macro trend exhaustion.
🔵 HOW TO USE
Spotting Absorption: If you see a large Bullish HTF candle but the Delta Flux Curve is trending downward, it suggests aggressive selling is being absorbed by limit buyers.
Trading the "Flush": Liquidation labels (circles) often mark the local top or bottom of a move. When a "Liq" label appears after a fast price extension, it frequently signals a temporary exhaustion of the move.
Trend Confluence: Use the Dashboard to see if "Average Liq Volume" is increasing. Rising liquidation volume at the end of a trend often precedes a major reversal.
Intra-Candle Context: Watch the Delta Curve . If price is moving higher but the curve is flat, the move is likely low-conviction and prone to a retracement.
🔵 CONCLUSION
HTF Delta Flux + Liquidations bridges the gap between macro structure and micro order flow. By transforming raw volume into a visual "Flux" path and highlighting mathematical volume anomalies, it provides traders with a sophisticated map of institutional aggression and retail exhaustion. Indicator
CVD Multi-Timeframe DashboardCVD Multi-Timeframe Dashboard
═══════════════════════════════════════════
WHAT IT DOES
═══════════════════════════════════════════
Most CVD tools only show you the timeframe you're standing on. This one shows
you the whole stack at once. Stay on your execution chart — 1m, 3m, 5m,
whatever you trade — and read the net buying vs. selling pressure of the 5m,
15m, 1h, 4h, Daily and Weekly in a single on-chart table.
In one glance you know whether the bigger picture is backing your trade or
fighting it.
═══════════════════════════════════════════
WHY IT'S USEFUL
═══════════════════════════════════════════
Price can rise while volume delta quietly turns negative — buyers stepping
back even as the candle stays green. That divergence is an early warning, and
it's far more powerful when you can see it line up (or break down) across
multiple timeframes:
- All rows green → broad, one-sided buying. Trend trades have the wind behind them.
- All rows red → broad selling pressure. Longs are swimming upstream.
- Mixed rows → the timeframes disagree — often a pullback, rotation, or a
turning point forming.
This turns CVD from a single-timeframe reading into a top-down confluence tool.
═══════════════════════════════════════════
HOW IT WORKS
═══════════════════════════════════════════
Volume Delta = volume hitting the offer (buying) minus volume hitting the bid
(selling). The script uses PulseWire's ta.requestVolumeDelta() engine, which
scans lower-timeframe data to approximate that split as accurately as the
data allows.
Each row anchors that engine to a different timeframe and reports the NET delta
of that timeframe's CURRENT, developing bar — i.e. how much net buy/sell flow
has built up since that candle opened. As a higher-timeframe bar progresses,
its value accumulates; when a new bar opens, it resets. That's why the rows
genuinely differ from one another instead of repeating the same number.
═══════════════════════════════════════════
READING THE TABLE
═══════════════════════════════════════════
TF → the monitored timeframe
CVD Δ → net volume delta of its current bar (auto-formatted K / M / B)
Bias → BUY (positive) or SELL (negative), colour-coded
═══════════════════════════════════════════
SETTINGS
═══════════════════════════════════════════
- Timeframes to monitor — up to 6 slots, each with its own on/off toggle and
timeframe. Set them equal to or higher than your chart timeframe.
- Lower timeframe — resolution used to approximate up/down volume. Automatic
by default; lower = more precise, higher = more history.
- Style — table position, text size, and your own positive/negative colours.
═══════════════════════════════════════════
ALERTS
═══════════════════════════════════════════
"CVD bias flip" fires the moment any monitored timeframe's delta crosses
between positive and negative — useful for catching a shift in flow without
staring at the screen.
═══════════════════════════════════════════
NOTES & LIMITATIONS
═══════════════════════════════════════════
- Monitor timeframes ≥ your chart timeframe; lower ones aren't meaningful.
- The symbol must provide volume data, or the script will tell you.
- Lower-timeframe scanning approximates buy/sell volume — it isn't true
tick or bid/ask data. Use it as a directional gauge, not an exact figure.
Built on PulseWire's open-source CVD logic and the ta.requestVolumeDelta()
function from the PulseWire/ta library. Open-source — feedback and forks
welcome. Indicator
AMT Order Flow Suite v2.2AMT Order Flow Suite v2.2 — CVD · Delta · VWAP · Session Levels · Virgin POC
A complete Auction Market Theory order flow indicator built for XAUUSD (Gold), combining Cumulative Volume Delta, per-bar delta, session-anchored VWAP, intraday Point of Control, Value Area levels, Virgin POC detection, and Failed Auction signals — all in one script.
Developed and validated against 1.3 million ticks of raw XAUUSD price data across multiple weeks of live session analysis. Everything you see on the chart is derived from actual volume and delta, not price patterns alone.
WHAT IT SHOWS
Cumulative Volume Delta (CVD)
The core of the indicator. CVD accumulates signed volume throughout each session — positive when buyers are aggressive, negative when sellers dominate. Resets at the start of every new session so you always see the current day's order flow in isolation. An EMA signal line rides on top — when CVD crosses below its signal, bias turns bearish; above it, bullish. The fill colour shifts green/red to make the bias instantly readable.
CVD Divergence Labels
When price makes a new session high but CVD fails to confirm (DIST label) — that is distribution: institutions selling into retail buying. When price makes a new session low but CVD holds up (ABS label) — that is absorption: buyers stepping in as price flushes stops. These are the two highest-conviction signals in the indicator. Both are validated against real tick data.
Per-Bar Delta Histogram
Shows the signed volume of every individual bar — how hard buyers or sellers hit at that exact moment. Weighted by bar body ratio so doji bars don't falsely signal. High-volume bars are flagged with a marker. Absorption bars (high volume + tight range — the classic sign of an iceberg order defending a level) are marked with a diamond.
Session-Anchored VWAP with Standard Deviation Bands
VWAP resets each session and is calculated from the true volume-weighted average price. The ±1σ bands approximate the 70% Value Area — the zone where most of the day's business occurred. The ±2σ bands mark the outer extremes. Price extended beyond ±2σ with declining CVD is one of the strongest mean-reversion signals available.
Intraday POC (Point of Control)
Tracks the price level with the highest volume of the current session in real time. The POC is drawn as a dashed gold line extending right. This is the fair value anchor — price gravitates back to it repeatedly throughout the session and into the next day.
Value Area High (VAH) and Value Area Low (VAL)
Derived from the VWAP standard deviation bands. VAH = VWAP +1σ, VAL = VWAP -1σ. These are the boundaries of accepted value. Price breaking outside them and failing to hold is the definition of a Failed Auction — the primary trade setup this indicator is built around.
Virgin POC Detection
Tracks the POC of the previous two sessions. If price has not returned to a prior session's POC since that session ended, that level is "virgin" — untouched high-volume ground. When price finally reaches it, a circle marker appears on the chart (VP for 1-session-old, VP2 for 2-session-old). Virgin POCs produce the strongest reactions of any level because they contain trapped participants at their cost basis. Lines for VP1 and VP2 are drawn on the chart automatically each session and the live price levels are shown in the info table.
Failed Auction Signals (FA↑ / FA↓)
A Failed Auction occurs when price spikes outside the Value Area then returns back inside, rejecting the breakout. FA↑ (triangle up, below bar) fires when price has recently been below VAL and recovered back into value with positive delta and CVD above its signal line — buyers reclaimed the level. FA↓ (triangle down, above bar) fires when price has been above VAH and falls back with negative delta and CVD below its signal line — sellers rejected the breakout. Both signals are confirmed by CVD direction, not price alone.
Session Backgrounds and Open Labels
Asia (purple), London (gold), and NY (green) session backgrounds so you can instantly see which session produced which price action. LON and NY open labels appear at the exact opening bar of each session.
Live Info Table
Top-right corner dashboard showing: Session CVD, CVD Bias (BULL/BEAR), current bar delta, volume ratio, distance from VWAP, live POC price, VAH and VAL prices, current session name, active signal (if any), and the live levels of VP1 and VP2. Everything you need to read order flow without switching panes.
ALERT CONDITIONS (9 total)
✅ FA Long — Failed Auction long signal fired
✅ FA Short — Failed Auction short signal fired
✅ Bearish CVD Divergence — price new high, CVD not confirming (distribution)
✅ Bullish CVD Divergence — price new low, CVD not confirming (absorption)
✅ Absorption Detected — high volume + tight range at current bar
✅ Virgin POC Touch (1 session) — price reaching yesterday's untouched POC
✅ Virgin POC Touch (2 sessions) — price reaching 2-session-old POC (higher conviction)
✅ London Open — session beginning, watch for stop-hunt then direction
✅ NY Open — key session, trend continuation or reversal hour
SETTINGS
Timezone — set to your broker's chart timezone (default: Europe/London)
London / NY open hours — adjustable so the session labels and alerts fire at the correct time for your data feed
CVD Signal EMA length — controls how responsive the signal line is (default 20)
Volume average length — lookback for the volume ratio and absorption calculations
High-volume threshold — the multiple above average volume that triggers the high-vol flag
Absorption range ratio — how tight a bar's range must be relative to average to qualify as absorption
Level lookback — how many bars the POC tracker uses
All colours — fully customisable: bull, bear, CVD line, POC, VAH, VAL, VWAP, Virgin POC, absorption
HOW TO USE IT
Add to a 1-minute or 5-minute XAUUSD chart. Set your timezone to match your broker's data feed. The CVD pane appears below the chart automatically — if you only want the overlay elements on the main chart, right-click the pane and move or close it.
Each morning before London opens: note the POC, VAH, and VAL from the previous session (visible as dashed lines). Note the VP1 and VP2 levels in the info table — these are your virgin reaction zones for the day.
During London and NY: watch the CVD fill. Green fill above zero with price near VAL = look for FA↑. Red fill below zero with price near VAH = look for FA↓. DIST label at a new price high = distribution, shorts favoured. ABS label at a new price low = absorption, longs favoured.
NOTES
Works on any instrument with volume data but was designed and tested specifically on XAUUSD spot (Gold). The POC and Value Area are approximated using a session-anchored VWAP standard deviation method — this keeps the indicator fast and free of the loop timeout errors that affect bin-based volume profile calculations in Pine Script. For tick-perfect volume profiles, combine with PulseWire's built-in Session Volume Profile tool.
Built on Pine Script v6. No repainting. All calculations are bar-confirmed. Indicator
Session Pulse [JOAT]Session Pulse
Introduction
Session Pulse is an open-source multi-session gap statistics engine that tracks, categorizes, and accumulates gap data across Asia, London, and New York trading sessions, marks every session boundary transition with labeled vertical lines on the chart, and presents a unified session statistics dashboard. It answers a specific and persistent question that many traders examine manually: how often, in which direction, and by how much does this instrument gap between sessions?
Gap behavior is one of the most systematically consistent patterns across many instruments. Session close-to-open gaps represent a measurable directional displacement — one that either fills (mean reverts) or extends (confirms momentum) in predictable proportions over sufficiently large samples. Session Pulse automates the data collection and visualization for that entire analysis, providing live cumulative statistics on gap frequency, average gap size, maximum gap, and directional bias, refreshed on every bar.
Core Concepts
1. Session Detection
Each of the three sessions (Asia, London, New York) is detected using Pine Script's time() function with a user-configurable session string and timezone. Session transitions are identified by comparing the current bar's session membership to the previous bar's membership. A session start occurs on the first bar where the current bar is inside the session and the previous bar was outside:
inAsia = not na(time(timeframe.period, asiaSess, tzString))
inLondon = not na(time(timeframe.period, londonSess, tzString))
inNY = not na(time(timeframe.period, nySess, tzString))
asiaStart = inAsia and not inAsia
londonStart = inLondon and not inLondon
nyStart = inNY and not inNY
2. Gap Calculation and Categorization
A gap is calculated at each session open as the difference between the current bar's open and the previous bar's close, expressed as a percentage of the previous close. Gaps are categorized as Gap Up (positive gap, open above prior close) or Gap Down (negative gap, open below prior close). A minimum gap percentage threshold filters out negligible noise-level gaps that do not qualify as meaningful session displacements:
gapPct = (open - close ) / close * 100
isGapUp = asiaStart and gapPct > minGap
isGapDown = asiaStart and gapPct < -minGap
3. Session Boundary Visualization
At each session start, a vertical dotted line is drawn extending across the chart, and a labeled arrow points down from the top of the price range with the session name (ASIA, LONDON, NEW YORK). This creates a clear visual demarcation of every session boundary on the chart without requiring manual annotation. The lines and labels are drawn live on the current bar and persist across the chart history:
if showSessLns and londonStart
line.new(bar_index, low * 0.9999, bar_index, high * 1.0001,
color=color.new(#01579B, 55), style=line.style_dotted,
width=2, extend=extend.both)
label.new(bar_index, high, "LONDON",
style=label.style_label_down,
color=color.new(#01579B, 50), textcolor=color.white, size=size.tiny)
4. Cumulative Statistics Accumulation
Statistics are accumulated across the full chart history using running counters and accumulators for each direction. For each session type (Asia, London, NY), the indicator tracks: total gap count by direction, cumulative gap size sum for average computation, and the maximum gap in each direction. These statistics build bar by bar and display the full historical picture at any point in time:
if isGapUp
upCount += 1
upTotal += gapPct
upMax := math.max(upMax, gapPct)
5. Unified Statistics Dashboard
A single unified table presents all gap statistics in a structured layout: Gap Up rows at the top, a separator, Gap Down rows below, a final separator, and a summary row showing total gap count and the percentage of gaps that were up (directional bias). The entire table is positioned at a single user-configurable location on the chart, eliminating split-panel layouts:
// Row 0-1: Gap Up (Count, Avg, Max)
// Row 2: Separator
// Row 3-4: Gap Down (Count, Avg, Max)
// Row 5: Separator
// Row 6: Summary (Total, Up Bias %)
Features
Three-session gap tracking: Asia, London, and New York sessions each independently tracked with configurable session strings
Session boundary vertical lines: Dotted vertical lines with session name labels (ASIA, LONDON, NEW YORK) at every session transition
Gap categorization: Gap Up and Gap Down separated by direction with independent counters, average, and maximum for each
Minimum gap filter: Configurable threshold eliminates negligible gaps below a specified percentage
Directional bias calculation: Summary row shows Up Bias % — what proportion of all detected gaps have been upward
Unified statistics table: Single table with Gap Up, separator, Gap Down, separator, and summary rows at a single configurable position
Table position selector: Top-right, bottom-right, bottom-left, or bottom-center placement
Session boundary line toggle: Session vertical lines and labels can be independently enabled or disabled
Configurable session strings: All three session time windows are fully user-adjustable for different broker timezones
Timezone input: Single timezone string applied consistently to all three session detectors
Alerts: Six alertconditions — Gap Up and Gap Down for each of the three sessions, plus Asia, London, and New York session open alerts
Input Parameters
Session Settings:
Timezone: Timezone string for session detection (default: America/New_York)
Asia Session: Session time string (default: 1800-0000)
London Session: Session time string (default: 0200-0500)
New York Session: Session time string (default: 0930-1600)
Gap Detection:
Min Gap %: Minimum gap size to qualify as a gap event (default: 0.05%)
Enable Gap Tracking toggles per session
Display:
Show Session Lines toggle
Show Stats Table toggle
Table Position: Top Right, Bottom Right, Bottom Left, Bottom Center
Session line colors for Asia, London, and New York
How to Use This Indicator
Step 1: Read the Directional Bias
The summary row of the statistics table shows Up Bias % — the percentage of all gaps that have been upward. An Up Bias above 60% on a large sample indicates this instrument has a persistent tendency to gap up at session opens. This is the first, most actionable piece of information from the table.
Step 2: Compare Average Gap Sizes
The average gap rows for Gap Up and Gap Down show the typical magnitude of each type. If the average Gap Down is significantly larger than the average Gap Up, the downside gaps — when they occur — tend to be more violent even if they are less frequent. This asymmetry has implications for stop sizing around session opens.
Step 3: Use Maximum Gap for Range Planning
The maximum gap rows show the largest gap in each direction recorded on the chart. This establishes the worst-case session displacement for this instrument at the current timeframe — useful for setting session-open risk boundaries.
Step 4: Use Session Boundary Lines for Chart Context
The vertical lines with session name labels divide the chart into session periods. On lower timeframes this makes it immediately clear which session each group of bars belongs to, providing context for patterns that occur predominantly in specific sessions.
Step 5: Monitor for Session Open Alerts
Set the session open alerts to receive notifications at each session transition. This is particularly useful on instruments where specific sessions (London or New York) have consistent volatility expansion patterns at open.
Indicator Limitations
Gap detection measures the open of the first bar inside a session versus the close of the last bar outside the session. On timeframes where session transitions do not align cleanly with bar boundaries, gaps may be slightly misattributed
On instruments that trade continuously (24/7 crypto) with no actual session close, the concept of a gap between sessions is less meaningful — the session boundaries exist but price does not actually stop between them
The minimum gap filter is a flat percentage threshold. Instruments with different typical volatility levels require different minimum gap values to produce meaningful categorization
Statistics accumulate from the beginning of the chart's data history. On very long charts or charts with intraday data going back years, early data may represent a different market regime than the current one, diluting the relevance of cumulative statistics
This indicator tracks and categorizes gaps. It does not predict gap fill probability, gap extension probability, or provide entry/exit signals
Originality Statement
Session Pulse is original in its simultaneous three-session gap tracking system with unified cumulative statistics, directional bias calculation, and session boundary visualization integrated into a single tool. This indicator is published because:
Tracking gap statistics across three named, independently configurable sessions simultaneously — with separate counters, averages, and maximums for each direction per session — in a single unified table is uncommon in published open-source Pine Script
The directional bias percentage (Up Bias %) derived from cumulative historical gap data provides a single, immediately actionable summary statistic that characterizes the instrument's session gap behavior over the entire charted history
The session boundary vertical lines with labeled session name arrows provide a visual calendar overlay that applies the same session detection logic used for gap calculation to the chart itself, creating consistency between the chart elements and the statistical table
The unified single-table layout with section separators — merging Gap Up, Gap Down, and summary into one table at one position — avoids the visual fragmentation of split multi-table layouts
Disclaimer
This indicator is provided for educational and informational purposes only. It is not financial advice or a recommendation to buy or sell any financial instrument. Trading involves substantial risk of loss. Session gap statistics reflect historical data and do not guarantee future gaps will occur with the same frequency, size, or direction. The directional bias percentage is a historical observation, not a predictive probability. Session open behavior is subject to news, earnings, and macroeconomic events that historical statistics do not account for. Always use proper risk management. The author is not responsible for any trading losses resulting from the use of this indicator.
-Made with passion by jackofalltrades
Indicator
Delta Pressure Gauge [JOAT]Delta Pressure Gauge
Introduction
Delta Pressure Gauge is a pane-based oscillator that constructs a volume-weighted directional wave from bar-by-bar delta estimation, normalized using a rolling maximum to ensure consistent scaling across all instruments and timeframes. The oscillator measures the pressure imbalance between buying volume and selling volume, smoothed into a wave that reveals accumulation and distribution phases with high visual clarity. The indicator includes a money flow pressure line, a cumulative windowed delta cloud, divergence detection, and crossover signal dots.
Traditional volume indicators — OBV, CMF, MFI — measure volume flows using raw or price-weighted calculations that are difficult to compare across instruments or timeframes because their absolute values depend on the asset's volume profile. Delta Pressure Gauge normalizes everything to a -1 to +1 scale using a rolling maximum, producing readings that are immediately interpretable regardless of whether the asset trades 100 shares or 100 million. The wave design provides a visual rhythm that makes accumulation and distribution phases recognizable at a glance.
Core Concepts
1. Body-Quality Weighted Bar Delta
Each bar contributes a delta value based on direction (bullish = +volume, bearish = -volume) multiplied by the bar's body quality ratio (body size divided by total range). A full-body bar contributes 100% of its volume to delta. A doji bar with no body contributes 0%. This filtering reduces the noise contribution of indecision bars that add volume without directional information.
body_qual = math.abs(close - open) / math.max(high - low, syminfo.mintick)
bar_delta = bar_dir * volume * body_qual
2. Rolling Maximum Normalization
The raw wave EMA is normalized by dividing by the rolling maximum absolute value over the normalization window. Unlike percentile-based normalization, rolling maximum works reliably from the first bar, requires no minimum warmup period, and produces values that are always within the -1 to +1 range:
norm_ref = ta.highest(math.abs(raw_wave), i_norm)
wt1 = raw_wave / math.max(nz(norm_ref, 1.0), 1.0)
3. Windowed Cumulative Delta
Rather than using an all-time cumulative delta (which grows without bound and becomes dominated by early bars), the cumulative component uses a 30-bar rolling sum. This produces a medium-term delta bias that reflects the recent directional commitment of volume participants.
4. Money Flow Pressure Line
A separate money flow calculation weights volume by the ratio of price movement to range: (close - open) / range × volume. This captures the efficiency of price movement relative to its volume cost — high-momentum bars have larger weights than range-bound bars.
5. Divergence Detection
Bullish divergence is detected when the delta wave makes a higher low while price makes a lower low. Bearish divergence is the mirror. Detection uses confirmed pivot points on the wave with persistent previous-pivot storage, avoiding any ta.valuewhen type compatibility issues. Divergence lines are rendered directly on the oscillator pane.
Features
Wave Oscillator: Gradient area fill between wave and zero, color-coded by direction and intensity
Signal Line: Smoothed signal with direction-colored rendering
Histogram: Four-state colored momentum bars showing wave-signal separation and its rate of change
Crossover Dots: Large circles with glow rings at every wave/signal crossover
Zero-Line Cross Dots: Small markers when wave crosses the zero line
Overbought/Oversold Extreme Dots: Markers at extreme readings
Divergence Triangles and Lines: Yellow markers and connecting lines when divergence is detected
Cumulative Delta Cloud: Area fill showing 30-bar rolling delta direction
Money Flow Line: Purple secondary line for cross-confirmation
Volume Surge Markers: Cross markers when volume exceeds 2x average
12-Row Dashboard: Pressure state, wave values, histogram, signals, cumulative delta, money flow, volume ratio, divergence state
Input Parameters
Wave Channel Length: Fast EMA for wave construction (default: 10)
Wave Average Length: Signal line smoothing period (default: 21)
Rolling Norm Window: Window for rolling maximum normalization (default: 100)
Overbought/Oversold levels: Four configurable threshold lines
Divergence pivot lookback settings
How to Use This Indicator
Crossover Dots as Momentum Shifts
When the wave crosses above the signal line (green dot), buying pressure is accelerating relative to the smoothed baseline. This confirms a momentum pickup. The opposite for bearish crosses. These signals are strongest when they occur near or below the oversold line.
Zero-Line Confirmation
The wave crossing zero from below indicates that aggregate buying pressure over the wave window has turned net positive. This is a regime confirmation, not an entry signal in isolation, but it supports bullish bias when aligned with price structure.
Divergence at Extremes
Divergence is most meaningful when the wave is at or near an overbought or oversold extreme. A bullish divergence from the oversold zone (yellow triangle pointing up) suggests the distribution of buying pressure is shifting despite continued price weakness.
Cumulative Delta Direction
The blue-purple cloud shows whether the 30-bar rolling delta is net positive or negative. When the wave crosses bullishly and the cumulative delta is also positive, both the momentum and the persistent pressure agree.
Limitations
This indicator uses close-open direction to estimate bar delta. True bid-ask volume data (available only through specialized data providers) would be more precise. On instruments with significant wick activity (doji bars), this estimation introduces noise
Normalization by rolling maximum means a single extreme bar sets the scale for the entire norm window. One unusually large volume bar will compress all surrounding readings
Divergence detection requires enough bars for pivot confirmation. The pivot right-side lookback introduces a lag in divergence signals
This indicator measures volume pressure proxies, not actual institutional activity. Large volume does not always reflect institutional intent
Originality Statement
The body-quality weighting applied before delta smoothing is a deliberate design choice that reduces doji noise in a way that raw-volume or typical-price approaches do not. The rolling maximum normalization (rather than percentile or z-score) was chosen specifically because it operates reliably from the first bar without a warmup cliff, making the indicator immediately usable on limited datasets. The combination of a wave oscillator, cumulative delta cloud, and money flow line on a single pane provides three independent perspectives on the same underlying volume pressure question.
Disclaimer
This indicator is for educational and informational purposes only. Volume pressure readings are estimates derived from OHLCV data. They do not represent actual order flow or institutional positioning. Past divergence patterns do not predict future price reactions. Always apply appropriate risk management.
-Made with passion by officialjackofalltrades
Indicator
Delta Pressure Index [JOAT]Delta Pressure Index
Introduction
The Delta Pressure Index is an advanced open-source volume analysis indicator that deconstructs order flow into actionable pressure metrics, combining volume delta estimation, absorption zone detection, smart money divergence analysis, and institutional order block identification. This indicator transforms raw volume data into a comprehensive pressure measurement system that reveals the true balance of power between buyers and sellers.
Unlike basic volume indicators that simply display volume bars, this system analyzes the internal structure of volume to identify buying and selling pressure, detect institutional absorption patterns, recognize smart money positioning through divergences, and map order blocks where large players have established positions. The indicator is designed for traders who understand that volume precedes price and that institutional footprints can be detected through systematic pressure analysis.
Why This Indicator Exists
This indicator addresses a critical gap in retail volume analysis: the ability to measure directional pressure and institutional activity in real-time. While exchange-provided volume data shows total activity, it doesn't reveal who is winning the battle between buyers and sellers. The Delta Pressure Index solves this by:
Volume Delta Estimation: Separates buying volume from selling volume using candle structure and wick analysis
Pressure Index Calculation: Normalizes delta to a -100 to +100 scale showing relative pressure strength
Absorption Zone Detection: Identifies when high volume produces minimal price movement, indicating institutional accumulation or distribution
Smart Money Divergence: Compares volume-weighted price to actual price to detect hidden institutional positioning
Order Block Mapping: Marks zones where institutional orders have been placed based on volume and price action patterns
Multi-Timeframe Pressure: Analyzes pressure alignment across multiple timeframes for conviction measurement
Cumulative Delta Tracking: Monitors net buying/selling pressure over time to identify accumulation and distribution phases
Each component provides unique intelligence about market microstructure. Delta estimation shows directional bias, pressure index quantifies strength, absorption detection reveals institutional activity, divergences expose hidden positioning, order blocks mark support/resistance zones, and cumulative delta tracks longer-term institutional flow.
Core Components Explained
1. Enhanced Volume Delta Estimation
The indicator uses advanced candle structure analysis to estimate buying and selling volume:
barRange = high - low
bodySize = math.abs(close - open)
wickUp = high - math.max(open, close)
wickDown = math.min(open, close) - low
buyVolume = close > open ?
volume * ((close - open + wickUp * 0.5) / barRange) :
close < open ?
volume * ((wickUp + bodySize * 0.3) / barRange) :
volume * 0.5
sellVolume = volume - buyVolume
delta = buyVolume - sellVolume
This calculation considers:
- Bullish candles (close > open): Majority of volume is buying, with upper wick getting 50% weight
- Bearish candles (close < open): Majority of volume is selling, with upper wick and 30% of body getting buying weight
- Doji candles (close = open): Volume split 50/50 between buying and selling
The wick weighting acknowledges that wicks represent rejected prices where one side overwhelmed the other, providing additional directional information beyond just the candle body.
2. Pressure Index Normalization
Raw delta values are normalized to create a pressure index ranging from -100 (extreme selling) to +100 (extreme buying):
pressureIndex = ta.sma(delta, deltaLength) / ta.sma(volume, deltaLength) * 100
This normalization divides smoothed delta by smoothed volume, creating a percentage that shows the proportion of volume favoring buyers vs sellers. The smoothing (default 14 periods) reduces noise while maintaining responsiveness to genuine pressure shifts.
The pressure index is further enhanced with volume-weighted calculations:
vwPressure = ta.vwma(pressureIndex, deltaLength)
Volume-weighted pressure gives more importance to high-volume bars, ensuring that pressure readings reflect periods of genuine institutional participation rather than low-volume noise.
3. Pressure Zone Classification
The indicator classifies pressure into seven distinct zones:
Extreme Buy (>70): Overwhelming buying pressure, potential exhaustion or continuation
Strong Buy (50-70): Significant buying dominance, healthy uptrend conditions
Moderate Buy (30-50): Mild buying bias, early trend development
Weak Buy (20-30): Slight buying edge, transitional conditions
Neutral (-20 to +20): Balanced conditions, no clear directional pressure
Weak Sell (-30 to -20): Slight selling edge, transitional conditions
Moderate Sell (-50 to -30): Mild selling bias, early downtrend development
Strong Sell (-70 to -50): Significant selling dominance, healthy downtrend conditions
Extreme Sell (<-70): Overwhelming selling pressure, potential exhaustion or continuation
These zones help traders quickly assess current pressure conditions and identify extreme readings that often precede reversals or accelerations.
4. Absorption Detection System
Absorption occurs when high volume produces minimal price movement, indicating that one side is absorbing the other's orders:
avgVolume = ta.sma(volume, 20)
avgRange = ta.sma(barRange, 20)
volumeRatio = volume / avgVolume
rangeRatio = barRange / avgRange
absorption = volumeRatio > absorptionThreshold and rangeRatio < 0.5
The system identifies absorption when:
- Volume exceeds average by the threshold multiplier (default 2.5x)
- Price range is less than 50% of average range
Absorption is classified as:
- Buy Absorption: High volume + small range + positive delta = Institutional accumulation
- Sell Absorption: High volume + small range + negative delta = Institutional distribution
- Extreme Absorption: Absorption score exceeds 1.5x threshold = Major institutional activity
Absorption zones often mark significant support/resistance levels where institutions have established large positions.
5. Smart Money Divergence Analysis
The indicator compares volume-weighted average price (VWAP) to simple moving average to detect smart money positioning:
vwPrice = ta.vwma(close, 20)
actualPrice = ta.sma(close, 20)
smartMoneyDivergence = ((vwPrice - actualPrice) / actualPrice) * 100
When VWAP is significantly above SMA (>2%), it indicates that higher-volume bars occurred at higher prices, suggesting smart money accumulation. When VWAP is significantly below SMA (<-2%), it indicates higher-volume bars occurred at lower prices, suggesting smart money distribution.
Smart money signals are generated when:
- Bullish: Divergence >2%, price below VWAP, positive pressure = Accumulation opportunity
- Bearish: Divergence <-2%, price above VWAP, negative pressure = Distribution warning
6. Order Block Detection
Order blocks are identified using institutional footprint patterns:
bullishOB = close < open and close > open and volume > avgVolume * 1.2
bearishOB = close > open and close < open and volume > avgVolume * 1.2
Bullish order blocks occur when:
- Previous candle was bearish (close < open)
- Current candle is bullish (close > open)
- Volume exceeds average by 20%
This pattern suggests institutions placed buy orders in the previous bearish candle, which then fueled the bullish reversal. The zone between the previous candle's low and high becomes a potential support area.
Bearish order blocks follow the inverse logic, marking potential resistance zones where institutional sell orders were placed.
7. Cumulative Delta Tracking
The indicator maintains a running total of delta to track longer-term institutional positioning:
var float cumulativeDelta = 0
cumulativeDelta += delta
Rising cumulative delta indicates sustained buying pressure (accumulation phase). Falling cumulative delta indicates sustained selling pressure (distribution phase). The rate of change in cumulative delta shows acceleration or deceleration of institutional flow.
The indicator also tracks session cumulative delta that resets on trend changes, providing shorter-term context for intraday pressure analysis.
8. Delta Momentum and Acceleration
The indicator calculates momentum and acceleration metrics:
deltaMomentum = ta.roc(pressureIndex, 5)
deltaAcceleration = ta.roc(deltaMomentum, 3)
Delta momentum shows the rate of change in pressure, identifying when pressure is building or fading. Delta acceleration (second derivative) identifies inflection points where momentum is changing direction, often preceding major pressure shifts.
Positive acceleration with positive momentum suggests strengthening buying pressure. Negative acceleration with positive momentum warns that buying pressure is weakening, even if still positive.
9. Multi-Timeframe Pressure Analysis
The indicator requests pressure data from four higher timeframes (default: 5m, 15m, 60m, 240m):
htf1_pressure = request.security(syminfo.tickerid, htf1, pressureIndex, lookahead=barmerge.lookahead_off)
MTF confluence score is calculated by averaging the sign of pressure across all timeframes:
mtfConfluence = (math.sign(htf1_pressure) + math.sign(htf2_pressure) +
math.sign(htf3_pressure) + math.sign(htf4_pressure)) / 4 * 100
Confluence scores near +100 indicate all timeframes show buying pressure. Scores near -100 indicate all timeframes show selling pressure. Scores near 0 indicate mixed or transitional conditions across timeframes.
Visual Elements
Pressure Index Columns: Main histogram showing pressure index with gradient coloring from extreme sell (pink) to extreme buy (cyan)
Volume-Weighted Pressure Line: Yellow line overlay showing VWMA of pressure for trend identification
Pressure EMA Line: Cyan line showing smoothed pressure trend
Delta Momentum Histogram: Purple histogram showing rate of change in pressure
Reference Lines: Horizontal lines at 0, ±30, ±50, ±70 marking pressure zone boundaries
Divergence Labels: Text labels marking regular and hidden divergences between price and pressure
Smart Money Labels: Green labels marking accumulation/distribution signals
Absorption Markers: Cyan/red labels marking buy/sell absorption zones
Order Block Boxes: Orange boxes marking institutional order block zones on price chart
Extreme Pressure Labels: Small labels marking extreme buy/sell pressure conditions
Pressure Heatmap: Subtle background gradient showing pressure intensity
Comprehensive Dashboard: Real-time metrics table showing pressure, delta %, cumulative delta, zone, absorption, smart money, divergence, momentum, MTF confluence, and all key metrics
The dashboard displays 12+ key metrics with color-coded values and status indicators, providing complete pressure analysis at a glance.
Input Parameters
Core Settings:
Delta Length: Period for delta smoothing (5-100, default 14)
Smoothing Period: Additional smoothing for pressure index (1-20, default 3)
Volume MA Length: Period for volume average (5-100, default 20)
Absorption Threshold: Volume multiplier for absorption detection (1.0-5.0, default 2.5)
Multi-Timeframe:
Enable Multi-Timeframe Analysis: Toggle MTF pressure analysis (default enabled)
HTF 1/2/3/4: Four higher timeframe selections (default 5m, 15m, 60m, 240m)
Display Options:
Show Cumulative Delta: Toggle cumulative delta tracking (default enabled)
Show Absorption Zones: Toggle absorption detection markers (default enabled)
Show Divergences: Toggle divergence detection (default enabled)
Show Smart Money Signals: Toggle smart money analysis (default enabled)
Show Volume Profile: Toggle volume profile POC (default enabled)
Show Dashboard: Toggle metrics table (default enabled)
Show Pressure Heatmap: Toggle background gradient (default enabled)
Show Order Blocks: Toggle order block boxes (default enabled)
Colors:
All colors are fully customizable including buy pressure (neon cyan), sell pressure (neon pink), buy absorption (neon cyan), sell absorption (neon red), smart money (neon green), divergence (neon purple), and order blocks (sunset orange).
How to Use This Indicator
Step 1: Assess Current Pressure
Check the dashboard "Pressure" value and "Zone" classification. Extreme readings (>70 or <-70) often precede reversals or strong continuations. Strong readings (50-70 or -50 to -70) indicate healthy trend conditions.
Step 2: Monitor Delta Percentage
Review "Delta %" showing the proportion of volume favoring buyers vs sellers. Values above 50% indicate buying dominance, below -50% indicate selling dominance. This provides confirmation of pressure index readings.
Step 3: Track Cumulative Delta
Observe "Cum Delta" to identify longer-term institutional positioning. Rising cumulative delta during pullbacks suggests accumulation. Falling cumulative delta during rallies warns of distribution.
Step 4: Identify Absorption Zones
Watch for absorption labels and check dashboard "Absorption" status. Buy absorption near support levels suggests institutional accumulation. Sell absorption near resistance suggests institutional distribution. These zones often become significant support/resistance.
Step 5: Detect Smart Money Divergence
Monitor smart money labels and dashboard status. Accumulation signals during downtrends suggest smart money is buying weakness. Distribution signals during uptrends warn that smart money is selling strength.
Step 6: Analyze Divergences
Look for divergence labels where price makes new highs/lows but pressure doesn't confirm. Regular divergences signal potential reversals. Hidden divergences suggest trend continuation after pullbacks.
Step 7: Map Order Blocks
Identify order block boxes on the price chart. These zones mark where institutions placed large orders. Price often respects these levels on retests, providing high-probability entry zones.
Step 8: Confirm with MTF Confluence
Check "MTF Confluence" in dashboard. High positive confluence (>75) confirms buying pressure across timeframes. High negative confluence (<-75) confirms selling pressure. Low confluence suggests mixed conditions.
Best Practices
Use on liquid instruments with reliable volume data for most accurate pressure readings
Extreme pressure readings (>70 or <-70) are most reliable when accompanied by volume surges
Absorption zones near key price levels offer highest-probability reversal setups
Smart money divergence signals work best when confirmed by order block formation
Cumulative delta diverging from price often precedes major reversals
Order blocks are most reliable when formed on high volume (>1.5x average)
MTF confluence above 75% or below -75% provides strong directional conviction
Delta momentum acceleration signals often precede pressure regime changes
Pressure heatmap intensity helps visualize pressure strength at a glance
Regular divergences are most reliable at extreme pressure levels
Hidden divergences work best in established trends as continuation signals
Combine pressure analysis with price action for optimal entry timing
Indicator Limitations
Volume delta estimation is approximate - true delta requires exchange order flow data
The indicator works best on instruments with consistent, reliable volume reporting
Low-volume instruments or off-market hours can produce unreliable pressure readings
Absorption detection requires sufficient volume history for accurate average calculations
Smart money divergence assumes VWAP represents institutional positioning, which is a simplification
Order block detection uses pattern recognition that may not capture all institutional activity
MTF analysis requires data availability on all selected timeframes
Cumulative delta can drift significantly over long periods without reset mechanisms
The indicator shows pressure dynamics but cannot predict how long pressure will persist
Extreme pressure can remain extreme longer than expected during strong trends
Divergences can persist for extended periods before price responds
Technical Implementation
Built with Pine Script v6 using:
Advanced volume delta estimation using candle structure and wick analysis
Normalized pressure index calculation with volume-weighted enhancement
Seven-zone pressure classification system
Absorption detection using volume ratio and range ratio analysis
Smart money divergence calculation comparing VWAP to SMA
Order block detection using institutional footprint patterns
Cumulative delta tracking with session reset capability
Delta momentum and acceleration calculations using rate-of-change
Multi-timeframe security requests with proper lookahead settings
Fractal-based divergence detection system
Dynamic color gradients based on pressure intensity
Comprehensive dashboard with 12+ metrics and color-coded indicators
Persistent label system to prevent chart clutter
Order block box management with automatic cleanup
The code is fully open-source with detailed comments explaining each pressure calculation and detection algorithm.
Originality Statement
This indicator is original in its comprehensive pressure analysis approach. While volume delta concepts are established, this indicator is justified because:
It combines volume delta estimation with absorption detection, smart money analysis, and order block mapping in a unified system
The enhanced delta calculation uses wick weighting to capture rejected price information
Seven-zone pressure classification provides granular pressure assessment beyond simple buy/sell
Absorption detection identifies institutional activity through volume-range relationship analysis
Smart money divergence reveals hidden positioning through VWAP-SMA comparison
Order block detection maps institutional zones using volume-confirmed reversal patterns
Multi-timeframe confluence scoring validates pressure across temporal dimensions
Delta momentum and acceleration tracking provides early warning of pressure shifts
The comprehensive dashboard synthesizes 12+ distinct metrics into unified pressure intelligence
Integration of cumulative delta, absorption, divergence, and order blocks creates layered confirmation
Each component contributes unique intelligence: delta shows directional bias, pressure index quantifies strength, absorption reveals institutional activity, divergences expose hidden positioning, order blocks mark key zones, MTF confluence validates conviction, and momentum tracks acceleration. The indicator's value lies in combining these complementary perspectives into a cohesive pressure analysis system.
Disclaimer
This indicator is provided for educational and informational purposes only. It is not financial advice or a recommendation to buy or sell any financial instrument. Trading involves substantial risk of loss and is not suitable for all investors.
Volume pressure analysis is a tool for understanding order flow dynamics, not a crystal ball for predicting future price movement. Extreme pressure readings do not guarantee reversals. Absorption zones do not guarantee support/resistance. Past pressure patterns do not guarantee future pressure patterns. Market conditions change, and strategies that worked historically may not work in the future.
The metrics displayed are mathematical calculations based on current market data, not predictions of future price movement. Pressure readings, divergences, absorption zones, and order blocks do not guarantee profitable trades. Users must conduct their own analysis and risk assessment before making trading decisions.
Always use proper risk management, including stop losses and position sizing appropriate for your account size and risk tolerance. Never risk more than you can afford to lose. Consider consulting with a qualified financial advisor before making investment decisions.
The author is not responsible for any losses incurred from using this indicator. Users assume full responsibility for all trading decisions made using this tool.
-Made with passion by officialjackofalltrades Indicator
CVD Divergence & Absorption [UAlgo]CVD Divergence & Absorption is a dual context indicator that combines a cumulative volume delta (CVD) oscillator with price pivot structure to detect three important signal classes: Regular Divergence, Hidden Divergence, and Absorption. The script is designed to help traders compare price movement against directional volume participation and identify moments where price and CVD disagree, or where price stalls at similar levels while CVD continues to expand or contract.
The indicator runs in a separate pane ( overlay=false ) and plots a continuous CVD line, while signal labels and price side connecting lines are projected onto the main chart using force_overlay=true . This gives a clean workflow where you can monitor the CVD series in its own panel and still see exact divergence locations directly on price.
A key strength of this script is its lower timeframe volume decomposition. Instead of assigning the full chart bar volume to a single direction, it samples lower timeframe candles through request.security_lower_tf() , classifies each sub candle as up volume or down volume based on its close versus open, and aggregates the result into a bar level delta. That delta is then accumulated into the running CVD value. This approach is practical, efficient, and more granular than a simple chart timeframe approximation.
The script also includes quality controls for signal validation:
Pivot based comparisons for both price and CVD
Minimum and maximum bar distance filters between pivot comparisons
Equal price tolerance for absorption detection
A line of sight filter that rejects visually obstructed divergences where intervening candles violate the connecting path
The result is a professional divergence framework focused on cleaner, more interpretable signals rather than high frequency marking of every pivot mismatch.
Educational tool only. Not financial advice.
🔹 Features
🔸 1) Lower Timeframe CVD Construction (LTF Volume Decomposition)
The script builds CVD using lower timeframe candles selected by the user through the Lower Timeframe (LTF) input. For each chart bar, it retrieves arrays of lower timeframe open, close, and volume values and computes a signed delta:
Up LTF candle (close > open) adds volume
Down LTF candle (close < open) subtracts volume
Neutral LTF candle contributes zero
This produces a more refined bar delta than a single bar directional assumption and makes the CVD line more responsive to intrabar rotation.
🔸 2) Pivot Based Signal Engine for Price and CVD
Signal generation is anchored to confirmed price pivots using user defined left and right pivot bars. A signal candidate is considered only when:
A price pivot high/low is confirmed by ta.pivothigh or ta.pivotlow
The CVD value at that pivot location also behaves like a local high/low (simple local extremum check)
This means the script does not compare arbitrary points. It compares structurally meaningful swing locations.
🔸 3) Regular Divergence Detection (Bullish and Bearish)
The indicator supports classic regular divergence logic:
Bullish Regular Divergence: price makes a lower low while CVD makes a higher low
Bearish Regular Divergence: price makes a higher high while CVD makes a lower high
These signals can indicate weakening trend continuation pressure and potential reversal behavior, depending on context.
🔸 4) Hidden Divergence Detection (Bullish and Bearish)
The script also detects hidden divergence, which many traders use as continuation style confirmation:
Bullish Hidden Divergence: price makes a higher low while CVD makes a lower low
Bearish Hidden Divergence: price makes a lower high while CVD makes a higher high
Hidden divergence is optional and can be toggled independently from regular divergence.
🔸 5) Absorption Detection with Equal Price Tolerance
Absorption logic is included to capture situations where price prints near equal pivots, but CVD continues moving in a direction that suggests aggressive participation is being absorbed at the level:
Bearish Absorption (at highs): price is approximately equal high, but CVD is higher
Bullish Absorption (at lows): price is approximately equal low, but CVD is lower
The Equal Price Tolerance % input allows the script to treat two pivots as "equal" within a configurable percentage band. This makes absorption detection adaptable across instruments with different volatility profiles.
🔸 6) Minimum / Maximum Pivot Distance Filters
To avoid weak or overly stale comparisons, the script enforces:
A minimum number of bars between pivots
A maximum lookback distance for valid pivot pairing
This helps reduce noisy signals from pivots that are too close together and prevents pairing pivots that are too far apart to be contextually useful.
🔸 7) Line of Sight Validation (Signal Quality Filter)
Before accepting a pivot comparison, the script checks whether the straight line connecting the two price pivots is "clear" from intervening candle violations:
For bearish (high based) comparisons, intervening highs must not cross above the connecting line
For bullish (low based) comparisons, intervening lows must not cross below the connecting line
This is a strong visual integrity filter. It avoids many cluttered or ambiguous divergence lines that would look invalid once drawn on the chart.
🔸 8) Dual Visualization on Price and CVD
When a signal is detected, the script draws:
A label on price ("Reg", "Hid", or "Abs")
A line connecting the two relevant price pivots on the main chart
A line connecting the corresponding CVD pivot values in the CVD pane
Line styles are used to distinguish signal types:
Solid for Regular Divergence
Dashed for Hidden Divergence
Dotted for Absorption
This synchronized plotting makes it easy to verify the signal logic visually.
🔸 9) Conflict Handling for Cleaner Labels
Absorption labels are intentionally suppressed when a Hidden Divergence signal is already active on the same side in the same event block:
bullAbs and not bullHidDiv
bearAbs and not bearHidDiv
This prevents duplicate labels on the same pivot and improves chart readability.
🔸 10) Lightweight Pivot Memory Management
The script stores historical pivot comparison points in separate arrays for highs and lows and caps them using a helper method ( maxSize = 15 ). This keeps the logic efficient while preserving enough recent history for valid comparisons.
🔹 Calculations
1) Lower Timeframe Delta Aggregation
The script retrieves lower timeframe OHLCV arrays and computes bar delta by summing signed volume from each LTF candle:
array ltf_open = request.security_lower_tf(syminfo.tickerid, i_ltf, open)
array ltf_close = request.security_lower_tf(syminfo.tickerid, i_ltf, close)
array ltf_volume = request.security_lower_tf(syminfo.tickerid, i_ltf, volume)
if ltf_c > ltf_o
totalDelta += ltf_v
else if ltf_c < ltf_o
totalDelta -= ltf_v
Interpretation:
The script uses candle direction as a proxy for buying/selling pressure inside each chart bar.
This is an estimated delta model based on candle body direction, not true bid/ask tape delta.
2) CVD Accumulation
Bar delta is added into a running cumulative value stored inside a custom tracker object:
method update_cvd(CVD_Tracker this, float delta) =>
this.currentCVD += delta
this.currentCVD
The tracker persists across bars using:
var CVD_Tracker tracker = CVD_Tracker.new(0.0, array.new(), array.new())
This design keeps both the CVD value and pivot histories in one structured container.
3) Price Pivot Detection
Price pivots are confirmed using standard left/right pivot logic:
float ph = ta.pivothigh(high, i_left, i_right)
float pl = ta.pivotlow(low, i_left, i_right)
Because pivot confirmation occurs after i_right bars, signal labels and lines are placed at:
bar_index - i_right
This aligns the plotted signal with the actual pivot bar, not the confirmation bar.
4) CVD Pivot Confirmation at the Same Pivot Location
The script requires CVD to form a local extremum at the price pivot location using a simple 3-point comparison around currentCVD :
bool cvdIsPh = currentCVD > currentCVD and currentCVD > currentCVD
bool cvdIsPl = currentCVD < currentCVD and currentCVD < currentCVD
Then:
bool isPh = not na(ph) and cvdIsPh
bool isPl = not na(pl) and cvdIsPl
This ensures price and CVD are compared on synchronized pivot events rather than unrelated timestamps.
5) Pivot Pair Selection with Distance Constraints
When a new pivot is confirmed, the script scans prior pivots of the same type (highs with highs, lows with lows) and applies:
i_min_bars as the minimum spacing
i_max_bars as the maximum valid distance
if barsBetween < minBars
continue
if barsBetween > maxBars
break
This keeps comparisons within a user defined structural window.
6) Line of Sight Filter (Price Geometry Validation)
Before checking divergence conditions, the script verifies that the connecting price line is not invalidated by intervening candles.
For highs:
if barsBack >= 0 and high >= lineY
clear := false
For lows:
if barsBack >= 0 and low <= lineY
clear := false
Interpretation:
Bearish comparisons require a clean descending/ascending line between highs without intermediate highs breaking above it.
Bullish comparisons require a clean line between lows without intermediate lows breaking below it.
This is one of the script’s strongest anti-noise mechanisms.
7) Equal Price Tolerance for Absorption
The script calculates percentage difference between pivot prices and treats them as equal if the difference is within the tolerance:
float priceDiffPct = math.abs(newPivot.priceVal - histPivot.priceVal) / histPivot.priceVal * 100
bool isEqual = priceDiffPct <= eqTol
This enables absorption logic to work with approximate equal highs/lows instead of requiring perfect price matches, which are rare in live markets.
8) Bearish Signal Logic (Regular, Hidden, Absorption)
For pivot highs, the script compares a new pivot high against a historical pivot high after passing distance and line of sight checks.
Bearish Regular Divergence
newPivot.priceVal > histPivot.priceVal and not isEqual and newPivot.cvdVal < histPivot.cvdVal
Meaning:
Price makes a higher high
CVD makes a lower high
Bearish Hidden Divergence
newPivot.priceVal < histPivot.priceVal and not isEqual and newPivot.cvdVal > histPivot.cvdVal
Meaning:
Price makes a lower high
CVD makes a higher high
Bearish Absorption
isEqual and newPivot.cvdVal > histPivot.cvdVal
Meaning:
Price prints an approximately equal high
CVD pushes higher, suggesting buying effort is absorbed near the same price zone
9) Bullish Signal Logic (Regular, Hidden, Absorption)
For pivot lows, the script compares a new pivot low against a historical pivot low after passing distance and line of sight checks.
Bullish Regular Divergence
newPivot.priceVal < histPivot.priceVal and not isEqual and newPivot.cvdVal > histPivot.cvdVal
Meaning:
Price makes a lower low
CVD makes a higher low
Bullish Hidden Divergence
newPivot.priceVal > histPivot.priceVal and not isEqual and newPivot.cvdVal < histPivot.cvdVal
Meaning:
Price makes a higher low
CVD makes a lower low
Bullish Absorption
isEqual and newPivot.cvdVal < histPivot.cvdVal
Meaning:
Price prints an approximately equal low
CVD pushes lower, suggesting selling effort is absorbed near the same price zone
10) Signal Plotting and Visual Encoding
When a condition is confirmed, the script plots both price side and CVD side lines between the historical pivot and the new pivot, plus a compact label at the new pivot location.
Examples:
label.new(bar_index - i_right, low , text="Reg", ...)
line.new(bullLastPivot.loc, bullLastPivot.priceVal, bullNewPivot.loc, bullNewPivot.priceVal, ..., force_overlay=true)
line.new(bullLastPivot.loc, bullLastPivot.cvdVal, bullNewPivot.loc, bullNewPivot.cvdVal, ..., force_overlay=false)
Style mapping:
line.style_solid for Regular Divergence
line.style_dashed for Hidden Divergence
line.style_dotted for Absorption
11) Pivot History Storage and Capacity Control
Each confirmed pivot is stored in a side specific array (highs or lows) using a helper method:
method add_pivot(array this, Pivot p, int maxSize = 15) =>
this.push(p)
if this.size() > maxSize
this.shift()
This preserves recent structural history for future comparisons while keeping memory usage controlled. Indicator
Indicator
All-in-One CVD: Failed Auction + Trap + Flow Classifications All-in-One CVD : Failed Auction/Trap + Flow Classifications (Colored Bars)
Description:
This script provides an advanced order flow and delta-based trading visualization designed to highlight key market microstructure events in real time. It combines Cumulative Volume Delta (CVD), failed auction detection, absorption tracking, continuation signals, and trap identification into a single, coherent tool with colored bars and visual markers. Unlike standard volume or trend-following indicators, this script focuses on aggressive order flow and price acceptance/rejection events, making it particularly suitable for scalping, intraday momentum trading, and identifying high-probability short-term setups.
Originality and Purpose:
Many scripts either show CVD or detect failed auctions separately, but this script integrates multiple advanced flow concepts into one indicator.
By combining CVD, normalized delta, strong delta thresholds, failed auctions, absorption, traps, and continuation patterns, traders can identify where aggressive buying or selling is being absorbed, where price is likely to continue, and where traps are forming.
The mashup is intentional: each component validates the other. For example, a failed auction signal without absorption is less significant, while a failed auction coinciding with absorption signals a true high-probability trap or reversal.
Failed auctions typically align with "Failed 2" patterns from The Strat by Rob Smith, providing additional confirmation using a well-established price action methodology.
How It Works:
Volume and Delta Calculation:
Computes buying and selling pressure from volume and bar structure (high/low/close).
Supports UltraData mode for enhanced volume calculations using security data.
Options for Cumulative Mode: Total, Periodic, or EMA-based CVD.
Normalized Delta and Strong Delta Detection:
Calculates normalized delta (z-score) to standardize flow across different volatility regimes.
Flags strong buying or selling when delta exceeds user-defined thresholds.
Failed Auction Detection:
Highlights bars where price attempted to break previous highs/lows but failed to sustain, signaling trapped aggressive participants.
True failed auctions can coincide with absorption for higher-probability setups.
Absorption:
Detects situations where strong aggressive flow is absorbed at key levels, showing institutional participation or liquidity consumption.
Bullish absorption occurs when aggressive buying is absorbed at previous lows; bearish absorption occurs when aggressive selling is absorbed at previous highs.
Flow Classification:
Continuation: Aggressive flow accepted by the market — often the next candle continues in the direction of the delta.
Important: A single continuation signal does not guarantee follow-through. Traders should view it as an indicator that aggressive participants are in control for the current candle, and consider market context, trend, and support/resistance before assuming continuation. Multiple consecutive continuation signals or confirmation with absorption/strong delta increases reliability.
Trap: Aggressive flow trapped — the market reverses after failed auction.
Absorption: Aggressive orders absorbed — market shows hesitation at tested levels.
Colored CVD Bars and Visual Markers:
Bars colored green/red/gray based on delta direction.
Visual markers indicate flow state: circles for continuation, X-cross for traps, triangles for absorption.
Works in real time — live candles are updated with flow state markers.
Alerts:
Custom alert conditions for each flow type: continuation, trap, and absorption.
Alerts provide actionable signals for automated monitoring or manual trading.
Trading Applications:
Trap Trading: Identify aggressive buyers/sellers who fail to push price and get trapped. Use trap signals to fade reversals.
Continuation Trading: Detect market acceptance of aggressive flow for trend-following or breakout strategies. Use caution: a single continuation signal indicates probability, not certainty, and should be confirmed with structural context.
Absorption Analysis: Spot where institutional participants absorb liquidity before a potential directional move.
Intraday Scalping: Combines delta, volume, failed auction logic, and Strat alignment for high-frequency setups.
Key Notes:
True failed auctions with significant market impact require absorption — otherwise, a simple failed attempt may be a weak signal.
The script works across multiple markets (Forex, Crypto, Stock) and supports live bar updates.
Users can adjust strong delta thresholds, period lengths, and cumulative modes to fit their preferred trading style or volatility regime.
Conclusion:
This all-in-one script provides traders with a comprehensive, visually intuitive, and real-time method to detect aggressive flow, failed auctions, absorption, and continuation patterns. By linking failed auctions to The Strat’s failed 2 patterns, and clarifying the probabilistic nature of continuation signals, it merges advanced delta analytics with proven price action methodology, making it highly original, actionable, and educational for understanding market order flow dynamics. Indicator
Futures Ultra CVD (Pure )Futures Ultra CVD (Pure)
Futures Ultra CVD (Pure) is a volume-driven Cumulative Volume Delta (CVD) indicator designed to expose real buying and selling pressure behind price movement. Unlike price-only indicators, this script analyzes how volume is distributed within each bar to determine whether aggressive buyers or sellers are in control, then tracks how that pressure evolves over time.
This version is intentionally pure and ungated: it does not rely on external symbols, market filters, session bias, or macro confirmation. All signals are derived strictly from price, volume, and delta behavior of the active chart, making it suitable for futures, equities, crypto, and FX.
Core Concept: How CVD Is Calculated
For each bar, volume is split into buying pressure and selling pressure using the bar’s price position:
Buying volume increases as price closes closer to the high
Selling volume increases as price closes closer to the low
The difference between buying and selling volume forms Delta:
Positive delta = net aggressive buying
Negative delta = net aggressive selling
This delta is then accumulated into Cumulative Volume Delta (CVD) using one of three user-selectable modes:
Total – running cumulative sum of all delta values
Periodic – rolling sum over a fixed lookback period
EMA – smoothed cumulative delta using an exponential average
This flexibility allows traders to choose between raw order-flow tracking or smoother, trend-like behavior depending on timeframe and instrument.
Visual Structure & Histogram Logic
The CVD is displayed as a column histogram, not a line, to emphasize momentum and pressure shifts.
Enhanced coloring provides additional context:
Brighter green/red bars indicate increasing momentum
Muted colors indicate stalling or weakening pressure
Optional footprint-style highlights appear when buy or sell volume overwhelms the opposite side by a user-defined imbalance factor
This allows traders to visually distinguish:
Strength vs weakness
Continuation vs exhaustion
Absorption and aggressive participation
Built-In Order Flow Signals
The script automatically detects and labels key order-flow events:
Strong Delta
Triggered when delta exceeds a user-defined threshold, highlighting unusually aggressive buying or selling.
Delta Surge
Detects sudden expansion in delta compared to the prior bar, often associated with breakout attempts or liquidation events.
Zero-Line Crosses
Marks transitions between net bullish and bearish participation as CVD crosses above or below zero.
CVD Continuation Logic (Trend Confirmation)
Beyond raw delta, the script evaluates CVD structure to identify continuation conditions:
A bullish continuation requires:
Positive and rising CVD
Strong buy delta
Confirmation from at least one of the following:
CVD above its EMA and SMA
Bullish price expansion
Sustained positive delta pressure
Bearish continuation follows the inverse logic.
These continuation signals are designed to confirm participation strength, not predict reversals.
Conflict Detection (Divergence Warning)
The indicator also flags conflict conditions, where:
Strong buying occurs while CVD remains negative
Strong selling occurs while CVD remains positive
These scenarios often precede failed breakouts, absorption zones, or short-term reversals and can be used as cautionary signals.
Alerts & Practical Use
All major events include built-in alerts:
Strong delta
Delta surge
CVD continuations
Zero-line crosses
Buy/sell imbalances
Conflict signals
Alerts can be set to trigger on bar close or intrabar in real time, depending on trader preference.
How Traders Typically Use This Indicator
Confirm breakouts with delta participation
Validate trends using CVD continuation instead of price alone
Identify absorption or exhaustion via conflicts and imbalances
Combine with price structure, VWAP, or market profile tools
This script is not a trading system by itself. It is a decision-support tool designed to reveal what price alone cannot: who is actually in control of the market.
On-Chart Symbols & What They Mean
This script uses a small number of visual symbols to communicate order-flow events clearly and consistently. All symbols are derived directly from the Cumulative Volume Delta calculations described above.
Δ+ (Green Up Arrow)
Strong Buy Delta
Indicates that buying pressure on the current bar exceeded the Strong Delta Threshold
Represents aggressive market buying dominating selling volume
Often appears during breakouts, trend acceleration, or initiative buying
This symbol does not imply direction by itself; it only confirms strong buyer participation.
Δ− (Red Down Arrow)
Strong Sell Delta
Indicates that selling pressure on the current bar exceeded the Strong Delta Threshold
Represents aggressive market selling dominating buying volume
Often appears during breakdowns, liquidation events, or initiative selling
Like Δ+, this symbol measures participation strength, not trade direction.
↑ (Green Label Up)
CVD Bullish Continuation
Appears when all of the following are present:
CVD is positive and increasing
Strong buy delta is detected
At least one confirmation condition is met:
CVD is above its EMA and SMA
Price shows bullish expansion
Consecutive positive delta bars (sustained buying pressure)
This symbol highlights trend continuation supported by volume, not a reversal signal.
↓ (Red Label Down)
CVD Bearish Continuation
Appears when:
CVD is negative and decreasing
Strong sell delta is detected
At least one confirmation condition is met:
CVD is below its EMA and SMA
Price shows bearish expansion
Consecutive negative delta bars (sustained selling pressure)
This indicates bearish continuation with participation confirmation.
Cyan / Orange Histogram Bars
Footprint-Style Volume Imbalance
Cyan bars indicate buy volume exceeds sell volume by the imbalance factor
Orange bars indicate sell volume exceeds buy volume by the imbalance factor
These bars highlight areas where one side is overwhelming the other, often associated with absorption, initiative moves, or failed auctions.
Bright vs Muted Histogram Colors
CVD Momentum State
Bright colors = CVD increasing in the direction of its current bias
Muted colors = CVD losing momentum or stalling
This allows quick visual identification of strengthening vs weakening participation.
Conflict Alerts (No Symbol by Default)
Delta vs CVD Disagreement
These conditions trigger alerts (but no fixed chart icon):
Strong buying while CVD remains negative
Strong selling while CVD remains positive
Conflicts often signal absorption, trap conditions, or short-term exhaustion.
Important Usage Notes
All symbols are informational, not trade entries.
Signals are calculated from price-based volume distribution, not true bid/ask data.
Results depend on the quality of volume data provided by the exchange and PulseWire.
Indicator
Volume Pressure OscillatorThe Volume Pressure Oscillator (VPO) is a momentum-based indicator that measures the directional pressure of cumulative volume delta (CVD) combined with price efficiency. It oscillates between 0 and 100, with readings above 50 indicating net buying pressure and readings below 50 indicating net selling pressure.
The indicator is designed to identify the strength and sustainability of volume-driven trends while remaining responsive during consolidation periods.
How the Indicator Works
The VPO analyzes volume flow by examining price action at lower timeframes to build a Cumulative Volume Delta (CVD). For each chart bar, the indicator looks at intrabar price movements to classify volume as either buying volume or selling volume. These classifications are accumulated into a running total that tracks net directional volume.
The indicator then measures the momentum of this CVD over both short-term and longer-term periods, providing responsiveness to recent changes while maintaining awareness of the broader trend. These momentum readings are normalized using percentile ranking, which creates a stable 0-100 scale that works consistently across different instruments and market conditions.
A key feature is the extreme zone persistence mechanism. When the indicator enters extreme zones (above 80 or below 20), it maintains elevated readings as long as volume pressure continues in the same direction. This allows the VPO to stay in extreme zones during strong trends rather than quickly reverting to neutral, making it useful for identifying sustained volume pressure rather than just temporary spikes.
What Makes This Indicator Different
While many indicators measure volume or volume delta, the VPO specifically measures how aggressively CVD is currently changing and whether that pressure is being sustained. It's the difference between knowing "more volume has accumulated on the buy side" versus "buying pressure is intensifying right now and shows signs of continuation."
1. Focus on CVD Momentum, Not CVD Levels
Most CVD indicators display the cumulative volume delta as a line that trends up or down indefinitely. The VPO is fundamentally different - it measures the slope of CVD rather than the absolute level. This transforms CVD from an unbounded cumulative metric into a bounded 0-100 oscillator that shows the intensity and direction of current volume pressure, not just the historical accumulation.
2. Designed to Stay in Extremes During Trends
Unlike traditional oscillators that treat extreme readings (above 80 or below 20) as overbought/oversold reversal signals, the VPO is engineered to oscillate within extreme zones during strong trends. When sustained buying or selling pressure exists, the indicator remains elevated (e.g., 80-95 or 5-20) rather than quickly reverting to neutral. This makes it useful for trend continuation identification rather than exclusively for reversal trading.
3. Percentile-Based Normalization
The VPO uses percentile ranking over a lookback window, which provides consistent behavior across different instruments, timeframes, and volatility regimes without constant recalibration.
4. Dual-Timeframe Momentum Synthesis
The indicator simultaneously considers short-term CVD momentum (responsive to recent changes) and longer-term CVD momentum (tracking trend direction), weighted and combined with a slow-moving trend bias. This multi-timeframe approach helps it stay responsive in ranging markets while maintaining context during trends.
How to Use the Indicator
Understanding the Zones:
80-100 (Strong Buying Pressure): CVD momentum is strongly positive. In trending markets, the indicator oscillates within this zone rather than immediately reverting to neutral. This suggests sustained accumulation and trend continuation probability.
60-80 (Moderate Buying): Positive volume pressure but not extreme. Suitable for identifying pullback entry opportunities within uptrends.
40-60 (Neutral Zone): Volume pressure is balanced or unclear. No strong directional edge from volume. Often seen during consolidation or trend transitions.
20-40 (Moderate Selling): Negative volume pressure developing. May indicate distribution or downtrend continuation setups.
0-20 (Strong Selling Pressure): CVD momentum is strongly negative. During downtrends, sustained readings in this zone suggest continued distribution and downside follow-through probability.
Practical Applications:
Trend Confirmation: When price makes new highs/lows, check if VPO confirms with similarly elevated readings. Divergences (price making new highs while VPO fails to reach prior highs) may indicate weakening momentum.
Range Trading: During consolidation, the VPO typically oscillates between 30-70. Readings toward the low end of the range (30-40) may present accumulation opportunities, while readings at the high end (60-70) may indicate distribution zones.
Extreme Persistence: If VPO reaches 90+ or drops below 10, this indicates exceptional volume pressure. Rather than fading these extremes immediately, monitor whether the indicator stays elevated. Sustained extreme readings suggest strong trend continuation potential.
Context with Price Action: The VPO is most effective when combined with price action or other orderflow indicators. Use the indicator to gauge whether volume is confirming or contradicting.
What the Indicator Does NOT Do:
It does not provide specific entry or exit signals
It does not predict future price direction
It does not guarantee profitable trades
It should not be used as a standalone trading system
Settings Explanation
Momentum Period (Default: 14)
This parameter controls the lookback period for CVD rate-of-change calculations.
Lower values (5-10): Make the indicator more responsive to recent volume changes. Useful for shorter-term trading and more active oscillation. May produce more whipsaws in choppy markets.
Default value (14): Provides balanced responsiveness while filtering out most noise. Suitable for swing trading and daily timeframe analysis.
Higher values (20-50): Create smoother readings and focus on longer-term volume trends. Better for position trading and reducing false signals, but with slower reaction to genuine changes in volume pressure.
Important Notes:
This indicator requires intrabar data to function properly. On some instruments or timeframes where lower timeframe data is not available, the indicator may not display.
The indicator uses request.security_lower_tf() which has a limit of intrabars. On higher timeframes, this provides extensive history, but on very low timeframes (<1-minute charts), the indicator may only cover limited historical bars.
Volume data quality varies by exchange and instrument. The indicator's effectiveness depends on accurate volume reporting from the data feed.
Indicator
Order Flow RSI - Price / CVD / OIOrder Flow RSI blends three powerful market perspectives — Price , Cumulative Volume Delta (CVD) , and Open Interest (OI) — into one unified RSI-style oscillator.
It reveals momentum and imbalance across these data streams and highlights situations where participation, liquidity, and positioning disagree — moments that often precede reversals.
What it does
The indicator converts:
Price → RSI (classic momentum),
CVD → RSI (buy/sell pressure balance),
OI → RSI (position expansion/contraction)
…then plots all three RSIs together on the same 0–100 scale.
A fourth Consensus RSI (average of any two or all three) can optionally be shown to simplify the view.
Core logic
CVD engine – based on PulseWire’s native volume-delta request.
Modes: Continuous (default, smooth line), Anchored (resets each session), Rolling window.
Open Interest – pulled automatically from the symbol’s “_OI” feed; aligns to chart timeframe for real-time flow.
RSI calculation – standard RSI applied to each data stream, optionally smoothed (SMA / EMA / RMA / WMA / VWMA).
Signals – optional background highlights when:
All three RSIs are overbought (red) or oversold (green), or
Any pair show opposite extremes (e.g., price overbought + OI oversold).
Consensus RSI – arithmetic mean of the selected RSIs, summarizing overall market tone.
Inputs overview
CVD settings: anchor period, lower-TF delta, mode, rolling length
RSI lengths: separate for price, CVD, OI
Smoothing: type + period applied to all RSIs at once
Consensus: choose which RSIs to average
Signals: enable/disable each combination; optional alerts
Levels: adjustable OB/MID/OS (default 70 / 50 / 30)
Visuals: fill between active RSIs, background highlights, level lines, colors in Style tab
How to read it
All 3 overbought (red): broad exhaustion → possible correction
All 3 oversold (green): broad depletion → possible bounce
Opposite pairs: divergence between price and participation
Price↑ but OI↓ (red) → weak rally, fading participation
Price↓ but CVD↑ (green) → hidden accumulation
Combine with structure and volume profile for confirmation.
Notes
Works best on assets with full CVD + OI data (futures, BTC, etc.).
Use Continuous CVD for smooth RSI, Anchored for session analysis.
Smoothing 2–5 EMA is a good starting point to reduce noise.
All styling (colors, line types, thickness) is adjustable in the Style tab.
Limitations & caveats
CVD requires accurate tick/volume/delta data from your data feed. Performance may differ across instruments.
OI availability varies by exchange / symbol. Where OI is absent, pairwise OI signals are not evaluated.
This indicator is a tool — it generates signals of interest, not guaranteed profitable trades. Backtest and combine with your risk rules.
Smoothing introduces lag; longer smoothing reduces noise but delays signals.
Order Flow RSI bridges traditional momentum analysis and order-flow context — giving a multi-dimensional view of when markets are truly stretched or quietly reloading.
Sometimes it works, sometimes it doesn't. Indicator
Cumulative Volume Delta Profile and Heatmap [BackQuant]Cumulative Volume Delta Profile and Heatmap
A multi-view CVD workstation that measures buying vs selling pressure, renders a price-aligned CVD profile with Point of Control, paints an optional heatmap of delta intensity, and detects classical CVD divergences using pivot logic. Built for reading who is in control, where participation clustered, and when effort is failing to produce result.
What is CVD
Cumulative Volume Delta accumulates the difference between aggressive buys and aggressive sells over time. When CVD rises, buyers are lifting the offer more than sellers are hitting the bid. When CVD falls, the opposite is true. Plotting CVD alongside price helps you judge whether price moves are supported by real participation or are running on fumes.
Core Features
Visual Analysis Components
CVD Columns - Plot of cumulative delta, colored by side, for quick read of participation bias.
CVD Profile - Price-aligned histogram of CVD accumulation using user-set bins. Shows where net initiative clustered.
Split Buy and Sell CVD - Optional two-sided profile that separates positive and negative CVD into distinct wings.
POC - Point of Control - The price level with the highest absolute CVD accumulation, labeled and line-marked.
Heatmap - Semi-transparent blocks behind price that encode CVD intensity across the last N bars.
Divergence Engine - Pivot-based detection of Bearish and Bullish CVD divergences with optional lines and labels.
Stats Panel - Top level metrics: Total CVD, Buy and Sell totals with percentages, Delta Ratio, and current POC price.
How it works
Delta source and sampling
You select an Anchor Timeframe that defines the higher time aggregation for reading the trend of CVD.
The script pulls lower timeframe volume delta and aggregates it to the anchor window. You can let it auto-select the lower timeframe or force a custom one.
CVD is then accumulated bar by bar to form a running total. This plot shows the direction and persistence of initiative.
Profile construction
The recent price range is split into Profile Granularity bins.
As price traverses a bin, the current delta contribution is added to that bin.
If Split Buy and Sell CVD is enabled, positive CVD goes to the right wing and negative CVD to the left wing.
Widths are scaled by each side’s maximum so you can compare distribution shape at a glance.
The Point of Control is the bin with the highest absolute CVD. This marks where initiative concentrated the most.
Heatmap
For each bin, the script computes intensity as absolute CVD relative to the maximum bin value.
Color is derived from the side in control in that bin and shaded by intensity.
Heatmap Length sets how far back the panels extend, highlighting recurring participation zones.
Divergence model
You define pivot sensitivity with Pivot Left and Right .
Bearish divergence triggers when price confirms a higher high while CVD fails to make a higher high within a configurable Delta Tolerance .
Bullish divergence triggers when price confirms a lower low while CVD fails to make a lower low.
On trigger, optional link lines and labels are drawn at the pivots for immediate context.
Key Settings
Delta Source
Anchor Timeframe - Higher TF for the CVD narrative.
Custom Lower TF and Lower Timeframe - Force the sampling TF if desired.
Pivot Logic
Pivot Left and Right - Bars to each side for swing confirmation.
Delta Tolerance - Small allowance to avoid near-miss false positives.
CVD Profile
Show CVD Profile - Toggle profile rendering.
Split Buy and Sell CVD - Two-sided profile for clearer side attribution.
Show Heatmap - Project intensity panels behind price.
Show POC and POC Color - Mark the dominant CVD node.
Profile Granularity - Number of bins across the visible price range.
Profile Offset and Profile Width - Position and scale the profile.
Profile Position - Right, Left, or Current bar alignment.
Visuals
Bullish Div Color and Bearish Div Color - Colors for divergence artifacts.
Show Divergence Lines and Labels - Visualize pivots and annotations.
Plot CVD - Column plot of total CVD.
Show Statistics and Position - Toggle and place the summary table.
Reading the display
CVD columns
Rising CVD confirms buyers are in control. Falling CVD confirms sellers.
Flat or choppy CVD during wide price moves hints at passive or exhausted participation.
CVD profile wings
Thick right wing near a price zone implies heavy buy initiative accumulated there.
Thick left wing implies heavy sell initiative.
POC marks the strongest initiative node. Expect reactions on first touch and rotations around this level when the tape is balanced.
Heatmap
Brighter blocks indicate stronger historical net initiative at that price.
Stacked bright bands form CVD high volume nodes. These often behave like magnets or shelves for future trade.
Divergences
Bearish - Price prints a higher high while CVD fails to do so. Effort is not producing result. Potential fade or pause.
Bullish - Price prints a lower low while CVD fails to do so. Capitulation lacks initiative. Potential bounce or reversal.
Stats panel
Total CVD - Net initiative over the window.
Buy and Sell volume with percentages - Side composition.
Delta Ratio - Buy over Sell. Values above 1 favor buyers, below 1 favor sellers.
POC Price - Current control node for plan and risk.
Workflows
Trend following
Choose an Anchor Timeframe that matches your holding period.
Trade in the direction of CVD slope while price holds above a bullish POC or below a bearish POC.
Use pullbacks to CVD nodes on your profile as entry locations.
Trend weakens when price makes new highs but CVD stalls, or new lows while CVD recovers.
Mean reversion
Look for divergences at or near prior CVD nodes, especially the POC.
Fade tests into thick wings when the side that dominated there now fails to push CVD further.
Target rotations back toward the POC or the opposite wing edge.
Liquidity and execution map
Treat strong wings and heatmap bands as probable passive interest zones.
Expect pauses, partial fills, or flips at these shelves.
Stops make sense beyond the far edge of the active wing supporting your idea.
Alerts included
CVD Bearish Divergence and CVD Bullish Divergence.
Price Cross Above POC and Price Cross Below POC.
Extreme Buy Imbalance and Extreme Sell Imbalance from Delta Ratio.
CVD Turn Bullish and CVD Turn Bearish when net CVD crosses zero.
Price Near POC proximity alert.
Best practices
Use a higher Anchor Timeframe to stabilize the CVD story and a sensible Profile Granularity so wings are readable without clutter.
Keep Split mode on when you want to separate initiative attribution. Turn it off when you prefer a single net profile.
Tune Pivot Left and Right by instrument to avoid overfitting. Larger values find swing divergences. Smaller values find micro fades.
If volume is thin or synthetic for the symbol, CVD will be less reliable. The script will warn if volume is zero.
Trading applications
Context - Confirm or question breakouts with CVD slope.
Location - Build entries at CVD nodes and POC.
Timing - Use divergence and POC crosses for triggers.
Risk - Place stops beyond the opposite wing or outside the POC shelf.
Important notes and limits
This is a price and volume based study. It does not access off-book or venue-level order flow.
CVD profiles are built from the data available on your chart and the chosen lower timeframe sampling.
Like all volume tools, readings can distort during roll periods, holidays, or feed anomalies. Validate on your instrument.
Technical notes
Delta is aggregated from a lower timeframe into an Anchor Timeframe narrative.
Profile bins update in real time. Splitting by side scales each wing independently so both are readable in the same panel.
Divergences are confirmed using standard pivot definitions with user-set tolerances.
All profile drawing uses fixed X offsets so panels and POC do not swim when you scroll.
Quick start
Anchor Timeframe = Daily for intraday context.
Split Buy and Sell CVD = On.
Profile Granularity = 100 to 200, Profile Position = Right, Width to taste.
Pivot Left and Right around 8 to 12 to start, then adapt.
Turn on Heatmap for a fast map of interest bands.
Bottom line
CVD tells you who is doing the lifting. The profile shows where they did it. Divergences tell you when effort stops paying. Put them together and you get a clear read on control, location, and timing for both trend and mean reversion.
Indicator
CVD Polarity Indicator (With Rolling Smoothed)📊 CVD Polarity Indicator (with Rolling Smoothing)
Purpose
The CVD Polarity Indicator combines Cumulative Volume Delta (CVD) with price bar direction to measure whether buying or selling pressure is in agreement with price action. It then smooths that signal over time, making it easier to see underlying volume-driven market trends.
This indicator is essentially a volume–price agreement oscillator:
- It compares price direction with volume delta (CVD).
- Translates that into per-bar polarity.
- Smooths it into a rolling sum for clarity.
- Adds a short EMA to highlight turning points.
The end result: a tool that helps you see when price action is backed by real volume flows versus when it’s running on weak participation.
__________________________________________________________________________________
1. Cumulative Volume Delta (CVD)
What it is:
CVD is the cumulative sum of buying vs. selling pressure measured by volume.
- If a bar closes higher than it opens → that bar’s volume is treated as buying pressure (+volume).
- If a bar closes lower than it opens → that bar’s volume is treated as selling pressure (–volume).
Rolling version:
Instead of accumulating indefinitely (which just creates a line that trends forever), this indicator uses a rolling sum over a user-defined number of bars (cumulation_length, default 14).
- This shows the net delta in recent bars, making the CVD more responsive and localized.
2. Bar Direction vs. CVD Change
Each bar has two pieces of directional information:
1. Bar direction: Whether the candle closed above or below its open (close - open).
2. CVD change: Whether cumulative delta increased or decreased from the prior bar (cvd - cvd ).
By comparing these two:
- Agreement (both up or both down):
→ Polarity = +volume (if bullish) or –volume (if bearish).
- Disagreement (bar up but CVD down, or bar down but CVD up):
→ Polarity flips sign, signaling divergence between price and volume.
Thus, raw polarity = a per-bar measure of whether price action and volume delta are in sync.
3. Polarity Smoothing (Rolling Polarity)
- Problem with raw polarity:
It flips bar-to-bar and looks very jagged — not great for seeing trends.
- Solution:
The indicator applies a rolling sum over the past polarity_length bars (default 14).
- This creates a smoother curve, representing the net polarity over time.
- Positive values = net bullish alignment (buyers stronger).
- Negative values = net bearish alignment (sellers stronger).
Think of it like an oscillator showing whether buyers or sellers have had control recently.
4. EMA Smoothing
Finally, a 10-period EMA is applied on top of the rolling polarity line:
- This further reduces noise.
- It helps highlight shifts in the underlying polarity trend.
- Crossovers of the polarity line and its EMA can serve as trade signals (bullish/bearish inflection points).
________________________________________________________________________________
How to Read It
1. Polarity above zero → Recent bars show more bullish agreement between price and volume.
2. Polarity below zero → Recent bars show more bearish agreement.
3. Polarity diverging from price → If price goes up but polarity trends down, it signals weakening buying pressure (potential reversal).
4. EMA crossovers →
- Polarity crossing above its EMA = bullish momentum shift.
- Polarity crossing below its EMA = bearish momentum shift.
Practical Use Cases
- Trend Confirmation
Use polarity to confirm whether a price move is supported by volume. If price rallies but
polarity stays negative, the move is weak.
- Divergence Signals
Watch for divergences between price trend and polarity trend (e.g., higher highs in price but
lower highs in polarity).
- Momentum Shifts
Use EMA crossovers as signals that the underlying balance of buying/selling has flipped.
Indicator
Advanced Market TheoryADVANCED MARKET THEORY (AMT)
This is not an indicator. It is a lens through which to see the true nature of the market.
Welcome to the definitive application of Auction Market Theory. What you have before you is the culmination of decades of market theory, fused with state-of-the-art data analysis and visual engineering. It is an institutional-grade intelligence engine designed for the serious trader who seeks to move beyond simplistic indicators and understand the fundamental forces that drive price.
This guide is your complete reference. Read it. Study it. Internalize it. The market is a complex story, and this tool is the language with which to read it.
PART I: THE GRAND THEORY - A UNIVERSE IN AN AUCTION
To understand the market, you must first understand its purpose. The market is a mechanism of discovery, organized by a continuous, two-way auction.
This foundational concept was pioneered by the legendary trader J. Peter Steidlmayer at the Chicago Board of Trade in the 1980s. He observed that beneath the chaotic facade of ticking prices lies a beautifully organized structure. The market's primary function is not to go up or down, but to facilitate trade by seeking a price level that encourages the maximum amount of interaction between buyers and sellers. This price is "value."
The Organizing Principle: The Normal Distribution
Over any given period, the market's activity will naturally form a bell curve (a normal distribution) turned on its side. This is the blueprint of the auction.
The Point of Control (POC): This is the peak of the bell curve—the single price level where the most trade occurred. It represents the point of maximum consensus, the "fairest price" as determined by the market participants. It is the gravitational center of the session.
The Value Area (VA): This is the heart of the bell curve, typically containing 70% of the session's activity (one standard deviation). This is the zone of "accepted value." Prices within this area are considered fair and are where the market is most comfortable conducting business.
The Extremes: The thin areas at the top and bottom of the curve are the "unfair" prices. These are levels where one side of the auction (buyers at the top, sellers at the bottom) was shut off, and trade was quickly rejected. These are areas of emotional trading and excess.
The Narrative of the Day: Balance vs. Imbalance
Every trading session is a story of the market's search for value.
Balance: When the market rotates and builds a symmetrical, bell-shaped profile, it is in a state of balance . Buyers and sellers are in agreement, and the market is range-bound.
Imbalance: When the market moves decisively away from a balanced area, it is in a state of imbalance . This is a trend. The market is actively seeking new information and a new area of value because the old one was rejected.
Your Purpose as a Trader
Your job is to read this story in real-time. Are we in balance or imbalance? Is the auction succeeding or failing at these new prices? The Advanced Market Theory engine is your Rosetta Stone to translate this complex narrative into actionable intelligence.
PART II: THE AMT ENGINE - AN EVOLUTION IN MARKET VISION
A standard market profile tool shows you a picture. The AMT Engine gives you the architect's full schematics, the engineer's stress tests, and the psychologist's behavioral analysis, all at once.
This is what makes it the Advanced Market Theory. We have fused the timeless principles with layers of modern intelligence:
TRINITY ANALYSIS: You can view the market through three distinct lenses. A Volume Profile shows where the money traded. A TPO (Time) Profile shows where the market spent its time. The revolutionary Hybrid Profile fuses both, giving you a complete picture of market conviction—marrying volume with duration.
AUTOMATED STRUCTURAL DECODING: The engine acts as your automated analyst, identifying critical structural phenomena in real-time:
Poor Highs/Lows: Weak auction points that signal a high probability of reversal.
Single Prints & Ledges: Footprints of rapid, aggressive market moves and areas of strong institutional acceptance.
Day Type Classification: The engine analyzes the session's personality as it develops ("Trend Day," "Normal Day," etc.), allowing you to adapt your strategy to the market's current character.
MACRO & MICRO FUSION: Via the Composite Profile , the engine merges weeks of data to reveal the major institutional battlegrounds that govern long-term price action. You can see the daily skirmish and the multi-month war on a single chart.
ORDER FLOW INTELLIGENCE: The ultimate advancement is the integrated Cumulative Volume Delta (CVD) engine. This moves beyond structure to analyze the raw aggression of buyers versus sellers. It is your window into the market's soul, automatically detecting critical Divergences that often precede major trend shifts.
ADAPTIVE SIGNALING: The engine's signal generation is not static; it is a thinking system. It evaluates setups based on a multi-factor Confluence Score , understands the market Regime (e.g., High Volatility), and adjusts its own confidence ( Probability % ) based on the complete context.
This is not a tool that gives you signals. This is a tool that gives you understanding .
PART III: THE VISUAL KEY - A LEXICON OF MARKET STRUCTURE
Every element on your chart is a piece of information. This is your guide to reading it fluently.
--- THE CORE ARCHITECTURE ---
The Profile Histogram: The primary visual on the left of each session. Its shape is the story. A thin profile is a trend; a fat, symmetrical profile is balance.
Blue Box : The zone of accepted, "fair" value. The heart of the session's business.
Bright Orange Line & Label : The Point of Control. The gravitational center. The price of maximum consensus. The most significant intraday level.
Dashed Blue Lines & Labels : The boundaries of value. Critical inflection points where the market decides to either remain in balance or seek value elsewhere.
Dashed Cyan Lines & Labels : The major, long-term structural levels derived from weeks of data. These are institutional reference points and carry immense weight. Treat them as primary support and resistance.
Dashed Orange Lines & Labels : Marks a Poor or Unfinished Auction . These represent emotional, weak extremes and are high-probability targets for future price action.
Diamond Markers : Mark Single Prints , which are footprints of aggressive, one-sided moves that left a "liquidity vacuum." Price is often drawn back to these levels to "repair" the poor structure.
Arrow Markers : Mark Ledges , which are areas of strong horizontal acceptance. They often act as powerful support/resistance in the future.
Dotted Gray Lines & Labels : The projected daily range based on multiples of the Initial Balance . Use them to set realistic profit targets and gauge the day's potential.
--- THE SIGNAL SUITE ---
Colored Triangles : These are your high-probability entry signals. The color is a strategic playbook:
Gold Triangle : ELITE Signal. An A+ setup with overwhelming confluence. This is the highest quality signal the engine can produce.
Yellow Triangle : FADE Signal. A counter-trend setup against an exhausted move at a structural extreme.
Cyan Triangle : BREAKOUT Signal. A momentum setup attempting to capitalize on a breakout from the value area.
Purple Triangle : ROTATION Signal. A mean-reversion setup within the value area, typically from one edge towards the POC.
Magenta Triangle : LIQUIDITY Signal. A sophisticated setup that identifies a "stop run" or liquidity sweep.
Percentage Number: The engine's calculated probability of success . This is not a guarantee, but a data-driven confidence score.
Dotted Gray Line: The signal's Entry Price .
Dashed Green Lines: The calculated Take Profit Targets .
Dashed Red Line: The calculated Stop Loss level.
PART IV: THE DASHBOARD - YOUR STRATEGIC COMMAND CENTER
The dashboard is your real-time intelligence briefing. It synthesizes all the engine's analysis into a clear, concise, and constantly updating summary.
--- CURRENT SESSION ---
POC, VAH, VAL: The live values for the core structure.
Profile Shape: Is the current auction top-heavy ( b-shaped ), bottom-heavy ( P-shaped ), or balanced ( D-shaped )?
VA Width: Is the value area expanding (trending) or contracting (balancing)?
Day Type: The engine's judgment on the day's personality. Use this to select the right strategy.
IB Range & POC Trend: Key metrics for understanding the opening sentiment and its evolution.
--- CVD ANALYSIS ---
Session CVD: The raw order flow. Is there more net buying or selling pressure in this session?
CVD Trend & DIVERGENCE: This is your order flow intelligence. Is the order flow confirming the price action? If "DIVERGENCE" flashes, it is a critical, high-alert warning of a potential reversal.
--- MARKET METRICS ---
Volume, ATR, RSI: Your standard contextual metrics, providing a quick read on activity, volatility, and momentum.
Regime: The engine's assessment of the broad market environment: High Volatility (favor breakouts), Low Volatility (favor mean reversion), or Normal .
--- PROFILE STATS, COMPOSITE, & STRUCTURE ---
These sections give you a quick quantitative summary of the profile structure, the major long-term Composite levels, and any active Poor Structures.
--- SIGNAL TYPES & ACTIVE SIGNAL ---
A permanent key to the signal colors and their meanings, along with the full details of the most recent active signal: its Type , Probability , Entry , Stop , and Target .
PART V: THE INPUTS MENU - CALIBRATING YOUR LENS
This engine is designed to be calibrated to your specific needs as a trader. Every input is a lever. This is not a "one size fits all" tool. The extensive tooltips are your built-in user manual, but here are the key areas of focus:
--- MARKET PROFILE ENGINE ---
Profile Mode: This is the most fundamental choice. Volume is the standard for price-based support and resistance. TPO is for analyzing time-based acceptance. Hybrid is the professional's choice, fusing both for a complete picture.
Profile Resolution: This is your zoom lens. Lower values for scalping and intraday precision. Higher values for a cleaner, big-picture view suitable for swing trading.
Composite Sessions: Your timeframe for macro analysis. 5-10 sessions for a weekly view; 20-30 sessions for a monthly, structural view.
--- SESSION & VALUE AREA ---
These settings must be configured correctly for your specific asset. The Session times are critical. The Initial Balance should reflect the key opening period for your market (60 minutes is standard for equities).
--- SIGNAL ENGINE & RISK MANAGEMENT ---
Signal Mode: THIS IS YOUR PERSONAL RISK PROFILE. Set it to Conservative to see only the absolute best A+ setups. Use Elite or Balanced for a standard approach. Use Aggressive only if you are an experienced scalper comfortable with managing more frequent, lower-probability setups.
ATR Multipliers: This suite gives you full, dynamic control over your risk/reward parameters. You can precisely define your initial stop loss distance and profit targets based on the market's current volatility.
A FINAL WORD FROM THE ARCHITECT
The creation of this engine was a journey into the very heart of market dynamics. It was born from a frustrating truth: that the most profound market theories were often confined to books and expensive institutional platforms, inaccessible to the modern retail trader. The goal was to bridge that gap.
The challenge was monumental. Making each discrete system—the volume profile, the TPO counter, the composite engine, the CVD tracker, the signal generator, the dynamic dashboard—work was a task in itself. But the true struggle, the frustrating, painstaking process that consumed countless hours, was making them work in unison . It was about ensuring the CVD analysis could intelligently inform the signal engine, that the day type classification could adjust the probability scores, and that the composite levels could provide context to the intraday structure, all in a seamless, real-time dance of data.
This engine is the result of that relentless pursuit of integration. It is built on the belief that a trader's greatest asset is not a signal, but clarity . It was designed to clear the noise, to organize the chaos, and to present the elegant, underlying logic of the market auction so that you can make better, more informed, and more confident decisions.
It is now in your hands. Use it not as a crutch, but as a lens. See the market for what it truly is.
"The market can remain irrational longer than you can remain solvent."
- John Maynard Keynes
DISCLAIMER
This script is an advanced analytical tool provided for informational and educational purposes only. It is not financial advice. All trading involves substantial risk, and past performance is not indicative of future results. The signals, probabilities, and metrics generated by this indicator do not constitute a recommendation to buy or sell any financial instrument. You, the user, are solely responsible for all trading decisions, risk management, and outcomes. Use this tool to supplement your own analysis and trading strategy.
PUBLISHING CATEGORIES
Volume Profile
Market Profile
Order Flow Indicator
Indicator
Cumulative Volume Delta Strategy | Flux Charts💎 GENERAL OVERVIEW
Introducing the Cumulative Volume Delta Strategy (CVDS) Indicator, an advanced tool designed to enhance trading strategies by identifying potential trend reversals through volume dynamics. This script features integrated order block detection, Fair Value Gaps (FVGs), and a dynamic take-profit (TP) and stop-loss (SL) system. For an in-depth understanding of the strategy, refer to the "HOW DOES IT WORK?" section below.
Features of the new Cumulative Volume Delta Strategy (CVDS) Indicator :
Cumulative Volume Delta-based Strategy
Order Block and Fair Value Gap (FVG) Entry Methods
Dynamic TP/SL System
Customizable Risk Management Settings
Alerts for Buy, Sell, TP, and SL Signals
📌 HOW DOES IT WORK ?
The CVDS indicator operates by tracking the net volume difference between buyers and sellers to identify divergences that could indicate potential trend reversals. A cumulative volume delta (CVD) calculation is employed to measure the intensity of these divergences in relation to price movements. The net volume sum is reset every trading day (can be changed from the settings using the anchor period option), and divergences are detected when the cumulative volume crosses the 0-line over or under.
Once a significant divergence is detected, the indicator identifies breakout points, confirmed by either Fair Value Gaps (FVGs) or Order Blocks (OBs). Depending on your chosen entry mode, the indicator will trigger a buy or sell entry when the confirmation signal aligns with the breakout direction. Alerts for Buy, Sell, Take-Profit, and Stop-Loss are available.
Note that the indicator cannot run on 1-minute and 1-second charts, as it needs to get data from a lower timeframe. 1-minutes & 1-second timeframes are the minimum timeframes in their ranges respectively.
🚩 UNIQUENESS
What sets this indicator apart is the combination of volume divergence analysis with advanced price action tools like Fair Value Gaps (FVGs) and Order Blocks (OBs). The ability to choose between these methods, along with a dynamic TP/SL system that adapts based on volatility, provides flexibility for traders in any market condition. The backtesting dashboard provides metrics about the performance of the indicator. You can use it to tune the settings for best use in the current ticker. The CVD-based strategy ensures that trades are initiated only when meaningful divergences between volume and price occur, filtering out noise and increasing the likelihood of profitable trades.
⚙️ SETTINGS
1. General Configuration
Anchor Period: Time anchor period used in CVD calculation. This is essentially the period that the volume delta sum will be reset. Lower timeframes may result in more entries at the cost of less reliable results.
Entry Mode: Choose between FVGs or OBs to trigger your entries based on the confirmation signals.
Retracement Requirement: Enable to confirm the entry after a retracement toward the FVG or OB.
2. Fair Value Gaps
FVG Sensitivity: Modify the sensitivity of FVG detection, allowing for more or fewer gaps to be considered valid.
3. Order Blocks (OB)
Swing Length: Define the swing length to identify OB formations. Shorter lengths find smaller OBs, while longer lengths detect larger structures.
4. TP / SL
TP / SL Method:
a) Dynamic: The TP / SL zones will be auto-determined by the algorithm based on the Average True Range (ATR) of the current ticker.
b) Fixed : You can adjust the exact TP / SL ratios from the settings below.
Dynamic Risk: The risk you're willing to take if "Dynamic" TP / SL Method is selected. Higher risk usually means a better winrate at the cost of losing more if the strategy fails. This setting is has a crucial effect on the performance of the indicator, as different tickers may have different volatility so the indicator may have increased performance when this setting is correctly adjusted. Indicator
Cumulative Volume Delta Histogram [TradingFinder] CVD Histogram🔵 Introduction
To fully understand Cumulative Volume Delta (CVD), it’s important to start by explaining Volume Delta. In trading, "Delta" refers to the difference between two values or the rate of change between two data points. Volume Delta represents the difference between buying and selling pressure for each candlestick on a chart, and this difference can vary across different time frames.
A positive delta indicates that buying volume exceeds selling volume, while a negative delta shows that selling pressure is stronger. When buying and selling volumes are equal, the volume delta equals zero.
The Cumulative Volume Delta (CVD) indicator tracks the cumulative difference between buying and selling volumes over time, helping traders analyze market dynamics and identify reliable trading signals through CVD divergences.
🔵 How to Use
Cumulative Volume Delta (CVD) is an essential technical analysis tool that aggregates delta values for each candlestick, creating a comprehensive indicator. This helps traders evaluate overall buying and selling pressure over market swings.
Unlike standard Volume Delta, which compares the delta on a candle-by-candle basis, CVD provides a broader view of buying and selling pressure during market trends. A downward-trending CVD suggests that selling pressure is dominant, which is typically a bearish signal.
Conversely, an upward-trending CVD indicates bullish sentiment, suggesting buyers are in control. This analysis becomes even more valuable when compared with price action and market structure, helping traders predict the direction of asset prices.
🟣 How to Use CVD in Trend Analysis and Market Reversals
Understanding how to detect trend changes using Cumulative Volume Delta is crucial for traders. Typically, CVD aligns with market structure, moving in the same direction as price trends.
However, divergences between CVD and price movements or signs of volume exhaustion can be powerful indicators of potential market reversals. Recognizing these patterns helps traders make more informed decisions and improve their trading strategies.
🟣 How to Spot Trend Exhaustion with CVD
CVD is particularly effective for identifying trend exhaustion in the market. For instance, if an asset's price hits a new low, but CVD doesn’t follow, this might indicate a lack of seller interest, signaling potential exhaustion and a possible reversal.
Similarly, if an asset reaches a new high but CVD fails to follow, it can suggest that buyers lack the strength to push the market higher, indicating a possible reversal to the downside.
🟣 How to Use CVD Divergence in Price Trend Analysis
Another effective use of CVD is identifying divergences in price trends. For example, if CVD breaks a previous high or low while the price remains stable, this divergence may indicate that buying or selling pressure is being absorbed.
For instance, if CVD rises sharply without a corresponding increase in asset prices, it may suggest that sellers are absorbing the buying pressure, which could lead to a strong sell-off. Conversely, if prices remain stable while CVD declines, it may indicate that buyers are absorbing selling pressure, likely leading to a price increase once the selling subsides.
🟣 CVD Display, Candlestick vs. Histogram – What’s the Difference?
CVD can be displayed in two different formats :
Candlestick Display : In this format, the data is shown as green and red candlesticks, each representing the difference in buying and selling pressure over a given time period. This display allows traders to visually analyze market pressure along with price changes.
Histogram Display : Here, the data is represented as vertical green and red bars, where each bar’s height corresponds to the volume delta. This format offers a clearer view of the strengths and weaknesses in market buying and selling pressure.
🟣 What are the Key Settings for CVD?
Cumulative Mode : CVD offers three modes: "Total," "Periodic," and "EMA." In "Total" mode, CVD accumulates the delta from the beginning to the end of the session. In "Periodic" mode, it accumulates volume periodically, resetting at specific intervals. In "EMA" mode, the CVD is smoothed using an Exponential Moving Average (EMA) to filter out short-term fluctuations.
Period : The "Period" setting allows you to define the number of bars or intervals for "Periodic" and "EMA" modes. A shorter period captures more short-term movements, while a longer period smooths out the fluctuations and provides a broader view of market trends.
Market Ultra Data : This feature integrates data from 26 major brokers into the volume calculations, providing more reliable volume data. It’s important to specify the type of market you are analyzing (Forex, crypto, etc.) as different brokers contribute to different markets. Enabling this setting ensures the highest accuracy in volume analysis.
🔵 Conclusion
Cumulative Volume Delta (CVD) is a powerful technical indicator that helps traders assess buying and selling pressure by aggregating the delta values of each candlestick. Whether displayed as candlesticks or histograms, CVD provides insights into market trends, helping traders make informed decisions.
CVD is particularly useful in identifying divergences and exhaustion in market trends. For example, if CVD does not align with price movements, it can signal a potential trend reversal. Traders use this tool to fine-tune their entry and exit points and better predict future market movements.
In summary, CVD is a versatile tool for analyzing volume data and understanding the balance of buying and selling pressure in the market, making it an invaluable asset in any trader’s toolkit
Indicator
