BT Smart CVD

11 Jan

BT Smart CVD — Intelligent Delta, Inventory & Participation Context

What this is
BT CVD is an advanced Cumulative Volume Delta tool designed to show when delta actually matters.

Instead of treating all buying/selling equally, BT CVD contextualizes delta by:
• Existing inventory size
• Relative delta significance
• Participation momentum (CDC-weighted)

This is a context and permission tool, not a buy/sell signal generator.

In the example above advanced but common CVD interpretations can mislead traders into trap areas. The Smart CVD recognizes exhaustion in real time, informing traders when price is slowing down and possibly reversing

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Core concepts

CVD Line = Inventory
The CVD line shows cumulative net buying or selling since the selected anchor.

• Rising CVD → inventory accumulation
• Falling CVD → inventory distribution
• Flat CVD → balance / rotation

Delta Histogram = Activity
Each histogram bar represents delta on that candle only.

• Cyan = net buying on the bar
• Red = net selling on the bar

Important:
A cyan bar below zero does NOT mean the market is bullish.
It means buyers were aggressive on that candle, even if sellers still control inventory overall.

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Intelligent Delta Heatmap

BT CVD uses a gradient heatmap to highlight relative delta significance, not raw size.

Delta intensity is normalized by:
• Current inventory (CVD level)
• A stabilizing denominator floor
• A user-defined % threshold

Result:
• Dark / saturated bars = meaningful pressure
• Faded bars = low-impact activity
• Rapid intensity changes = acceleration or liquidation

This makes liquidation, exhaustion, and initiative moves visually obvious.

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CDC-Weighted Delta (Key Feature)

Delta only matters if participation supports it.

When CDC-weighting is enabled:
• Delta is emphasized only when participation expands in the same direction
• Decelerating participation is muted
• Direction-aware logic correctly handles both bullish and bearish flows

This dramatically reduces false breakouts and late-trend traps.

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State-Aware CVD

BT CVD classifies flow into behavioral states that guide trader behavior:

Inventory Building
• Strong delta + expanding participation
• Press-friendly environment

Fragile Inventory
• Strong delta + weak participation
• Breakouts vulnerable

Exhaustion
• Participation spikes without inventory follow-through
• Fade risk increases

Inventory Unwind
• Strong opposing delta
• Liquidation or rotation risk

No arrows. No signals. Just behavior.

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Anchoring & Scaling

• Session / Weekly / All anchors for inventory context
• Manual or Auto scaling keeps CVD readable across assets
• Optional intrabar delta for higher-fidelity flow

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How traders use BT CVD

• Press trades only when inventory and participation align
• Avoid chasing fragile breakouts
• Recognize liquidation and exhaustion early
• Stand down during low-quality participation

Bottom line
BT CVD doesn’t predict price.

It helps traders align with professional inventory behavior and avoid trading when delta doesn’t matter.

Full playbook and available separately.

12 Jan

Catatan Rilis

***Added ability for 15 second & above data processing