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.
Cumulativevolumedelta
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
Cumulative Volume Delta Divergence [TradingFinder] Periodic EMA🔵 Introduction
The Cumulative Volume Delta (CVD) is a powerful tool in technical analysis that is derived from market volume or trading activity. The Cumulative Volume Delta Divergence Detector Indicator helps traders identify Cumulative Volume Delta Divergences (CVD Divergence), which can provide reliable trading signals.
These divergences, such as bullish and bearish CVD divergences, act as key indicators of potential trend reversals in financial markets. By analyzing CVD divergences, traders can gain insights into the strength of buying and selling pressure and make more informed predictions about price trends.
The CVD indicator is particularly effective for traders who engage in day trading and scalping, as it helps identify price reversal points by analyzing volume and price behavior.
Using the CVD indicator in combination with other technical tools such as support and resistance levels and candlestick patterns allows for a more accurate market analysis.
🔵 How to Use
Divergences are one of the most important technical analysis signals that indicate the current strength of a price move may not be sustainable.
Cumulative Volume Delta Divergence helps traders identify potential trading opportunities that may not be visible on the price chart alone.
This type of divergence examines the relationship between buying and selling volume and price, enabling traders to better understand price trends.
🟣 Bullish CVD Divergence
A bullish CVD divergence occurs when the price makes a lower low, but the CVD indicator shows a higher low. This indicates increasing buying pressure in the market, even though the price is declining. In other words, despite the price dropping, buyers are gradually gaining strength, which could signal a price reversal and the start of a bullish trend.
How to use this signal : In this scenario, traders looking to go long can use this signal as a favorable opportunity to enter the market. After a bullish divergence, the market typically tends to move upward.
To reduce risk, traders can wait for further confirmation from the price chart. For example, if the price breaks through the previous high after the divergence or breaks a resistance level, this could be a more reliable signal for entering the market.
🟣 Bearish CVD Divergence
A bearish CVD divergence is the opposite of a bullish divergence. In this type of divergence, the price makes a higher high, but the CVD indicator shows a lower high. This indicates decreasing buying pressure and weakening momentum in the current bullish trend. A bearish divergence often serves as a warning of a potential market reversal to the downside.
How to use this signal : Traders can use this divergence as an opportunity to exit long positions or enter short positions. When the CVD indicator makes a lower high compared to the price, it signals weakness in buyer strength.
If traders receive further confirmation from the price chart, such as a break of key support levels or an increase in selling volume, this can serve as a stronger signal for the beginning of a bearish trend.
🟣 How to Build a Trading Strategy with Cumulative Volume Delta Divergence
Using CVD divergence alone may not be sufficient. Traders should combine this tool with other technical analysis techniques and indicators to have more confidence in their decisions. For example, when observing a CVD divergence, traders can also analyze volume, trend lines, or candlestick patterns to get a more accurate market analysis.
Additionally, risk management should always be a priority. Using stop-loss orders and properly sizing trades can help traders minimize their losses if they make a mistake.
🔵 Setting
Divergence Fractal Period : Determines the period of swings. The minimum and default value is 2.
CVD Period : You can set the period of " Periodic " and " EMA " modes.
Cumulative Mode : It has three modes "Periodic" and "EMA". In "Periodic" mode, it accumulates the volume periodically and in "EMA" mode, it calculates the moving average of the volume.
Market Ultra Data : If you turn on this feature, 26 large brokers will be included in the calculation of the trading volume. The advantage of this capability is to have more reliable volume data. You should be careful to specify the market you are in, FOREX brokers and Crypto brokers are different.
🔵 Conclusion
The Cumulative Volume Delta (CVD) indicator is a powerful tool in technical analysis, helping traders better identify price trends and make more accurate market predictions. By identifying CVD divergences, traders can anticipate price reversals and time their market entries and exits accordingly.
Bullish and bearish CVD divergences each provide valuable signals that can help traders identify the best entry and exit points in the market. A bullish CVD divergence signals strength in buying that will likely lead to a price increase, while a bearish CVD divergence indicates weakness in the bullish trend and the potential for the beginning of a bearish trend.
Overall, combining CVD with other technical analysis tools and employing risk management strategies can help traders make better trading decisions and capitalize on available market opportunities.
Cumulative Delta [TradingFinder] Volume + Periodic + EMA🔵 Introduction
To fully grasp the concept of Cumulative Volume Delta (CVD), it's essential first to understand Volume Delta. In trading and technical analysis, the term "Delta" typically 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, calculated for each candlestick on a chart. This difference can vary across different timeframes.
A positive delta indicates that buying volume exceeds selling volume, while a negative delta shows that selling volume is greater. When buying and selling volumes are equal, the volume delta equals zero.
🟣 What is Cumulative Volume Delta (CVD)?
Cumulative Volume Delta (CVD) is a powerful tool in technical analysis that aggregates delta values for each candlestick, creating a comprehensive indicator that helps traders assess market trends.
Unlike the standard Volume Delta, which compares delta on a candle-by-candle basis, CVD provides insight into the overall buying and selling pressure during key market swings. A downward-trending CVD suggests that selling pressure is dominating, which is typically a bearish signal.
Conversely, an upward-trending CVD indicates bullish sentiment. This analysis becomes even more significant when comparing CVD with price action and market structure, helping traders to predict asset price directions.
By evaluating market highs and lows, one can determine the market trend. A consistent rise in these points indicates an uptrend, while a consistent fall suggests a downtrend.
🔵 How to Use
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 trends or signs of exhaustion in volume can be powerful indicators of potential market reversals. Recognizing these patterns can help traders make informed decisions and improve their trading strategies.
🟣 Identifying Trend Exhaustion with Cumulative Volume Delta (CVD)
The Cumulative Volume Delta (CVD) indicator is especially effective in identifying weakening trends in the market. For instance, if gold's price hits a new low, but CVD does not follow suit, this may indicate a lack of seller interest despite the new low, signaling potential seller exhaustion.
Most traders interpret this as a possible reversal from a bearish to a bullish trend. Similarly, if gold reaches a new high but CVD fails to do the same, it can suggest that buyers lack the strength to push the market higher, indicating a possible trend reversal.
🟣 Utilizing Cumulative Volume Delta (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 often indicates that buying or selling pressure is being absorbed.
For instance, if CVD rises sharply without a corresponding increase in gold prices, it may suggest that sellers are absorbing the buying pressure, potentially leading to a strong sell-off. Conversely, if gold prices remain stable while CVD declines, it could indicate that buyers are absorbing selling pressure, likely leading to a price increase once selling subsides.
🔵 Setting
Cumulative Mode : It has three modes "Total", "Periodic" and "EMA". In "Total" mode, it collects the volume from the beginning to the end. In "Periodic" mode, it accumulates the volume periodically and in "EMA" mode, it calculates the moving average of the volume.
Period : You can set the period of " Periodic " and " EMA " modes.
Market Ultra Data : If you turn on this feature, 26 large brokers will be included in the calculation of the trading volume.
The advantage of this capability is to have more reliable volume data. You should be careful to specify the market you are in, FOREX brokers and Crypto brokers are different.
🔵 Conclusion
Cumulative Volume Delta (CVD) is a powerful analytical tool in financial markets that helps analysts and traders assess buying and selling pressure by aggregating and combining the volume delta for each candlestick.
CVD can indicate the strength or weakness of a market trend. When CVD moves upward, it signals that buying pressure is dominant and is considered a bullish signal; conversely, a downward movement in CVD indicates that selling pressure is stronger and is viewed as a bearish signal.
This indicator is particularly effective in identifying divergences and exhaustion in market trends. For example, if CVD does not align with price movements, it may suggest a potential trend reversal.
Traders use this information to make more informed trading decisions, especially when identifying entry and exit points in the market.
Overall, CVD is a tool that enables analysts to better understand market fluctuations and more accurately predict future market trends.
Cumulative Volume Delta LineThis script is a refined version of TradingView's Cumulative Volume Delta (CVD) indicator. It features a CVD line for lower time frames and automatically switches to a Simple Moving Average (SMA) line on daily time frames and higher. This functionality makes it easier to spot Volume Delta divergences on daily charts while maintaining utility on intraday time frames.
Key Features:
Line Chart and Oscillator Configuration: Unlike TradingView's standard CVD, this script can be configured as a line chart or an oscillator, enhancing flexibility and usability.
Line chart for easier divergence spotting: The line chart format is preferred for spotting divergences, providing a clearer visual representation compared to other formats.
Accurate Calculations: Many older community CVD scripts use approximate calculations that can be inaccurate. This script leverages TradingView's own calculations, which are the most accurate available without tick data feeds.
Intraday and Daily Adaptation: The Traditional CVD script is a per bar volume delta on Daily and higher timeframes and cumulative volume delta for intraday session timeframes which makes it very hard to spot divergences on higher timeframes. This script resolves that by using an SMA on daily time frames and higher.
Auto-Switching Feature: The script intelligently switches between the CVD line and the SMA line based on the active time frame. This feature can be toggled off if you prefer to use the CVD on all time frames or the SMA on all time frames.
Customizable Settings: Building on TradingView's CVD script, this version includes all the same settings in addition to the new auto-switch, SMA length etc.
About Volume Delta and Cumulative Volume Delta:
Volume Delta is the difference between the buying and selling volume within a specified period. It helps traders understand the net buying or selling pressure in the market. A positive volume delta indicates more buying activity, while a negative volume delta indicates more selling activity.
Cumulative Volume Delta (CVD) aggregates the volume delta over time to provide a running total. This cumulative approach helps traders see the overall buying and selling pressure trends, making it easier to identify potential reversals or continuations in the market trend.
Cumulative Volume Delta (CVD)█ OVERVIEW
Cumulative Volume Delta (CVD) is a volume-based trading indicator that provides a visual representation of market buying and selling pressure by calculating the difference in traded volumes between the two sides. It uses intrabar information to obtain more precise volume delta information than methods using only the chart's timeframe.
Volume delta is the net difference between Buy Volume and Sell Volume. Positive volume delta indicates that buy volume is more than sell volume, and opposite. So Cumulative Volume Delta (CVD) is a running total/cumulation of volume delta values, where positive VD gets added to the sum and negative VD gets subtracted from the sum.
I found simple and fast solution how to calculate CVD, so made plain and concise code, here is CVD function :
cvd(_c, _o, _v) =>
var tcvd = 0.0, delta = 0.0
posV = 0.0, negV = 0.0
totUV = 0.0, totDV = 0.0
switch
_c > _o => posV += _v
_c < _o => negV -= _v
_c > nz(_c ) => posV += _v
_c < nz(_c ) => negV -= _v
nz(posV ) > 0 => posV += _v
nz(negV ) < 0 => negV -= _v
totUV += posV
totDV += negV
delta := totUV + totDV
cvd = tcvd + delta
tcvd += delta
cvd
where _c, _o, _v are close, open and volume of intrabar much lower timeframe.
Indicator uses intrabar information to obtain more precise volume delta information than methods using only the chart's timeframe.
Intrabar precision calculation depends on the chart's timeframe:
CVD is good to use together with open interest, volume and price change.
For example if CVD is rising and price makes good move up in short period and volume is rising and open interest makes good move up in short period and before was flat market it is show big chance to pump.
Volume Delta Methods (Chart) [LuxAlgo]The Volume Delta Methods (Chart) aims at highlighting the relationship between Buying or Selling Pressure and Price by presenting Volume Delta , and multiple derivatives of volume delta such as Cumulative Volume Delta (CVD) , Buy/Sell Volume , Total Volume , etc on top of the Main Price Chart .
The script uses two different intrabar (chart bars at a lower timeframe than the chart's) analyses to achieve the most approximate calculation of the volume delta and offers fully customizable visualization features using various types of charts such as line, area, baseline, candles, and histograms.
The script allows traders to see "within" the price bar, provides more transparency over a traditional volume histogram, and also allows users to monitor price and volume activity together.
🔶 USAGE
Volume delta is the difference between the buying volume and the selling volume, in other words, it is the net demand at a given bar allowing traders a more detailed insight when analyzing the market sentiment. A volume delta greater than 0 indicates more buying than selling pressure, whereas a volume delta less than 0 indicates more selling than buying pressure.
Volume delta plus total volume (regular volume) adds additional insight, where the total volume represents all the recorded trades for security that occurs in a given time interval. It is a measurement of the participation, enthusiasm, and interest in a given security.
Divergences occur when the polarity of the volume delta does not match the polarity of the price bar.
The users can enable the display of the numerical values of the volume delta.
Cumulative Volume Delta (CVD) is a way of using Volume Delta to measure an asset’s mid-to-long-term buy and sell pressure. It compares buying and selling volume over time and offers insights into market behavior at specific price points. Cumulative Volume Delta is effectively a continuation of the principles of Volume Delta but involves longer time periods and offers different trading signals.
Like the Volume Delta, the Cumulative Volume Delta (CVD) indicator measures the relationship between buy and sell pressure but does not focus on one specific candle in particular. Rather, the Cumulative Volume Delta takes the relative differences and combines them all over an extended time period.
Users have the ability Cumulative Volume Delta in various types of charts along with an optional smoothing line.
Placed above price bars options.
Interacting with price bar options helps to better identify CVD Divergences.
CVD Divergences
CVD reveals buying and selling trends that may or may not complement the price trend of the asset itself. Sometimes, price trends can run in contrast to trading behavior — sell volume can be dominant while the spot price is rising, and vice versa.
🔶 DETAILS
Theoretically, volume delta is calculated by taking the difference between the volume that traded at the ask price and the volume that traded at the bid price. The most precise calculation method uses tick data but requires huge amounts of data on historical bars, which usually limits the historical depth of charts. This indicator uses two different intrabar analysis methods for the volume delta calculation, where intrabars are chart bars at a lower timeframe than the chart's timeframe:
The logic used to assign intrabar volume to the "up" or "down".
- Buying/Selling pressure of the intrabar option (default)
(close - low) > (high - close) => UP
(close - low) < (high - close) => DOWN
(close - low) = (high - close) => close - previous close is used
- Polarity of the intrabar option
close > open => UP
close < open => DOWN
close = open => close - previous close is used
🔶 SETTINGS
The script takes into account user-defined parameters and performs calculations and presentations based on them, where detailed usage for each user-defined input parameter in indicator settings is provided with the related input's tooltip.
🔹 Calculation Settings
Calculation Method: Calculation method selection, available options 'Intrabar Buying/Selling Pressure' or 'Intrabar Polarity'.
Lower Timeframe Precision: Sets indicator precision, default option is 'Auto'.
🔹 Presentation Settings
Volume Delta: Toggles the visibility of the Volume Delta
Cumulative Volume Delta: Toggles the visibility of the Cumulative Volume Delta
Volume Delta/Price Bar Divergences: Toggles the visibility of the Volume Delta Divergences
Volume Delta Numerical Values: Toggles the visibility of the Volume Delta Numerical Values
🔹 Other Features
Volume MA: Toggles the visibility of the Volume Moving Average
CVD Smoothing: Toggles the visibility of the Cumulative Volume Delta's Smoothing Line
🔹 Volume Delta, Others
Volume Delta: Positive, Negative: Volume Delta color customization options
Volume Histogram: Growing, Falling: Volume Histogram color customization options
Display Length: Length of the visual objects presented with this indicator
Volume Delta Height: Volume delta height customization options
Volume Histogram Height: Volume histogram height customization options
Vertical Offset: Volume delta and histogram vertical positioning customization options
🔹 Cumulative Volume Delta, Others
CVD Line, Width, and Color: Cumulative Volume Delta - Line Width and Color customization options
CVD Area/Baseline, Gradient Coloring: Cumulative Volume Delta - Area and Baseline background gradient coloring customization options
CVD Candles Color, Positive, and Negative: Cumulative Volume Delta - Candles coloring customization options
CVD/Smoothing Background: Highlights and adjusts the transparency of the area between the Cumulative Volume Delta Line and it's Smoothing Line
🔶 RELATED SCRIPTS
Liquidity-Sentiment-Profile
EquiVolume
Volume-Footprint
MW Volume ImpulseMW Volume Impulse
Settings
* Moving Average Period: The moving average period used to generate the moving average line for the bar chart. Default=14
* Dot Size: The size of the dot that indicates when the moving average of the CVD is breached. Default=10
* Dot Transparency: The transparency of the dot that indicates when the moving average of the CVD is breached. Default=50
* EMA: The exponential moving average that the price must break through, in addition to the CVD moving
* Accumulation Length: Period used to generate the Cumulative Volume Delta (CVD) for the bar chart. Default=14
Introduction
Velocity = Change in Position over time
Acceleration = Change in Velocity over time
For this indicator, Position is synonymous with the Cumulative Volume Delta (CVD) value. What the indicator attempts to do is to determine when the rate of acceleration of buying or selling volume is changing in either or buying or selling direction in a meaningful way.
Calculations
The CVD, upon which these changes is calculated using candle bodies and wicks. For a red candle, buying volume is calculated by multiplying the volume by the spread percentage of the average of the top and bottom wicks, while Selling Volume is calculated multiplying the volume by the spread percentage of the average of the top and bottom wicks - in addition to the spread percentage of the candle body.
For a green candle, buying volume is calculated by multiplying the volume by the spread percentage of the average of the top and bottom wicks - plus the spread percentage of the candle body - while Selling Volume is calculated using only the spread percentage average of the top and bottom wicks.
How to Interpret
The difference between the buying volume and selling volume is the source of what generates the red and green bars on the indicator. But, more specifically, this indicator uses an exponential moving average of these volumes (14 EMA by default) to determine that actual bar size. The change in this value indicates the velocity of volume and, ultimately, the red and green bars on the indicator.
- When the bar height is zero, that means that there is no velocity, which indicates either a balance between buyers and sellers, or very little volume.
- When the bar height remains largely unchanged from period to period - and not zero - it means that the velocity of volume is constant in one direction. That direction is indicated by the color of the bar. Buyers are dominating when the bars are green, and sellers are dominating when the bars are red.
- When the bar height increases, regardless of bar color, it means that volume is accelerating in a buying direction.
- When the bar height decreases, regardless of bar color, it means that volume is accelerating in a selling direction.
The white line represents the moving average of the bar values, while the red and white - and green and white - dots show when the moving average has been breached by the Cumulative Volume Delta value AND the price has broken the 7 EMA (which is user editable). As with most moving averages, a breach can indicate a move in a bearish or bullish direction, and the sensitivity can be adjusted for differing market conditions
Other Usage Notes and Limitations
For better use of the signal, consider the following,
1. Volume moving below the moving average can indicate that the volume may be ready to exit an overbought condition, especially if the bars were making lower highs prior to the signal - regardless of bar color.
3. Volume moving above the moving average can indicate that the volume may be ready to exit an oversold condition, especially if the bars were making higher lows prior to the signal - regardless of bar color.
Additionally, a green dot that occurs with a positive (green) Cumulative Volume Delta can indicate a buying condition, while a red dot that occurs with a negative (red) Cumulative Volume Delta can indicate a selling condition. What this means is that buying or selling momentum briefly went against the direction of buying or selling Cumulative Volume Delta , but was not strong enough to change the buying or selling direction. In cases like this, once the volume begins to accelerate again in the direction of the buying or selling volume - indicated by a red or green dot - then the price is more likely to favor the direction of the Cumulative Volume Delta and its corresponding acceleration.
Although a red or green signal can indicate a change in direction, this script cannot predict the magnitude or duration of the change. It is best used with accompanying indicators that can be used to confirm a direction change, such as a moving average, or a supply or demand range.
CVD+ - Multi Symbol Cumulative Volume DeltaEdit of TradingView's LTF CVD
TradingView's CVD is already the most accurate CVD on the platform because of the LTF data. The purpose of the edit is to provide the ability to compare volume flow between multiple exchanges, futures & spot, multiple symbols or any other potential use case. All in single layout or even a single pane.
Added features:
- Option to manually select a symbol from which to calculate the LTF CVD
- Option to normalize the selected symbol's CVD to the chart's symbol's CVD (Useful when you want to compare futures and spot on the same pane)
- Label that displays the selected symbol's name and exchange
- Changed presets to plot the CVD line as the predetermined option
All of TV's original features remain the same.
Volume Suite - By Leviathan (CVD, Volume Delta, Relative Volume)Volume Suite is an all-in-one script that includes several volume-based indicators such as CVD, Volume Delta, Relative Volume, Buy/Sell Volume, Cumulative Relative Volume and more. Additionally, it offers fully customisable appearance and features for improved data visualization, such as highlights for high volume activity, small price changes with high volume, or large price changes with low volume and more.
Data available in version 1:
- Volume Delta
Volume Delta is the net difference between Buy Volume and Sell Volume at a given bar. Positive Delta indicates that Buy Volume > Sell Volume, while Negative Delta means that Sell Volume > Buy Volume. As there is not way to get tick data on Tradingview, calculating Volume Delta is improvised by using the direction of lower timeframe candles and their volume.
- Cumulative Volume Delta (CVD)
CVD is a running total/cumulation of Volume Delta values, where positive VD gets added to the sum and negative VD gets subtracted from the sum. It can be used for trend strength analysis, divergence strategies, sentiment, etc.
- Buy/Sell Volume
Buy and Sell Volume provides an insight into volume activity in a given bar by estimating the buying/selling volume based on the direction of lower timeframe candles and their volume.
- Relative Volume
Relative Volume is used to compare current trading volume to past trading volume over a given period. For instance, a relative volume of 1.0 indicates that volume is at an average level, while a relative volume of 2.0 suggests that the volume is twice as high as the average.
- Cumulative Relative Volume (CRVOL)
CRVOL is a running total/cumulation of Relative Volume values, where RVOL at close>open gets added to the sum and RVOL at close<open gets subtracted from the sum. It can be used for trend strength analysis, divergence strategies, sentiment, etc.
Alerts, aggregated data and more data sets coming in future updates.
Cumulative Volume Delta [Aggregated]This Indicator is known as Cumulative Volume Delta (CVD), and it represents the total difference between buying and selling pressure.
This indicator use intrabar analysis to strike a balance between the most straightforward and accurate approaches of computing volume delta.
Intrabar analysis is the most accurate method to determine volume delta on historical bars on our charts when TradingView does not currently have historical tick data available.
What is included in the indicator:
Candle Type CVD
Line Type CVD
Aggregated Data which is derived from different exchanges
● Binance
● Bybit
● OKX
● Delta
● WooNetwork
You can choose between Aggregated Data or Single Data by choice.
Aggregated Data - Gathered Data from multiple exchanges which is summarize and became one.
Single Data - Data on your current chart.
Aggregated Data for CVD is still limited to BTC pair as of the moment. The indicator automatically switches to Single Data Type if the opened chart is not a BTC pair.
Candle Colors are fully customizable just like the Tradingview candle settings.
This indicator is mostly compatible to all Crypto.
NOTE: Most code is derived from my library to keep everything neat and clean.
Realtime Cumulative DeltaThis is a Real time volume Delta indicator which has to run real time on the chart to capture observation.
Start it when the session starts and log the data and observe. It plots histograms as well as candlesticks of the the cumulative volume delta, from the style switch whichever you want.
It is done based on real time tick and not based on candlesticks, so the accuracy of volume delta is more. Uptick volumes are added as buy and downtick volumes as sell which is the actual way of calculating CVD
Apply the CVD concepts for trading results.
Cumulative DeltaThis scripts calculates the cumulative volume delta within the current day.
Options allow you to change the display type of this data (3 different configurations are given in the chart above)
The following options are available:
Colors selection
Reset cumulative delta everyday (can be disable to keep a continuous calculation of the delta over days)
Show histogram (used to display the delta as a positive/negative histogram)
Show daily High/Low levels (draw highest and lowest delta levels within the day)
Show candles (display the cumulative delta as candles)
Show Moving average (display a moving average which is reseted everyday at the same time as the cumulative delta itself)
Moving average length
This script will be updated if I feel the need to improve things or to add new features
Singular and Cumulative Volume Delta (SVD+CVD)This a Volume Delta indicator with Cumulative Volume Delta.
I have been studying Volume Delta and CVD trading strategies and indicator styles.
This implementation was developed to test a basic trailing window / oscillator approach.
Script has been republished as public and searchable.
Changelog from private era follows.
Jun 9 (2022)
Release Notes:
Added option to use EMA/SMA based cumulation. This will not scale well with singular data, so default view is still SUM.
Jun 9 (2022)
Release Notes:
Outdated comment correction.
Jun 9 (2022)
Release Notes:
Added default option to normalilze visual scale of MA cumulation types. The averaging creates a singular value sized results, instead of a range-sums. This multiples that candle result by the range length to get a range-sum sized result.
Added option to scale the cumulation size relative to the volume size. 1-to-1 scaling creates singular deltas that can be hard to see with all options on. This allows you to beef them up for visual or weighting purposes.
Jun 15 (2022)
Release Notes: * Added break even level for current delta. Tells where current delta must land for cumulative delta to stay flat.
* Added comparison of historical cumulative levels to current level. The historical levels are the initial values going into current accumulation window.
* Changed title of indicator to be more generic, clear, and searchable.
Jun 15 (2022)
Release Notes: * Added option to have the cumulation cutoff line AFTER or OVER the end of the cumulation window. This change is to ensure the indicator clearly documents it's behavior and avoids confusion on this / last cumulation window semantics.
* Bugfix: Initial levels were pulled from cumulation line which was AFTER end of window. This has been changed to the initial values INSIDE the cumulation window.
* Code cleanup.
June 17th (2022)
Release Notes: Marked as beta because TV confirmed they no longer allow private scripts to be changed to public. (Despite lingering documentation that says otherwise.
June 17th (2022)
Re-published as public.
FaustFaust is a composite indicator that combines 3 volume indicators: TSV, OBV, and PVT.
TSV moving average is plotted as an oscillator. OBV and PVT are calculated internally.
Four divergences are calculated for each indicator (regular bearish, regular bullish, hidden bearish, and hidden bullish) with three look-back periods (high, mid, and small).
For TSV, the fattest plotted line is the divergence with the highest look-back period, and the thinnest line is the divergence with the shortest look-back period.
For PVT, the larger the circle, the higher the divergence look-back period.
For OBV, the larger the triangle, the higher the divergence look-back period.
Aggr. CDV / Delta Volume - InFinitoModified & Updated script from MARKET VOLUME by Ricardo M Arjona @XeL_Arjona that Includes Aggregated Volume, Delta Volume, Volume by Side
Aggregation code originally from Crypt0rus
Candle Plotting code from LonesomeTheBlue
***The indicator can be used for any coin/symbol to aggregate volume , but it has to be set up manually***
***The indicator can be used with specific symbol data only by disabling the aggregation option, which allows for it to be used on any symbol***
- Calculated based on Aggregated Volume instead of by symbol volume . Using aggregated data makes it more accurate and allows to compare volume flow between different kinds of markets (Spot, Futures , Perpetuals, Futures+Perpetuals and All Volume ).
- As well, in order to make the data as accurate as possible, the data from each exchange aggregated is normalized to report always in terms of 1 BTC . In case this indicator is used for another symbol, the calculations can be adjusted manually to make it always report data in terms of 1 contract/coin.
All Aggregated Volume By Side: Based of Xel_Arjona's calculation, buy and sell volume is estimated each period. This indicators can display both Buy Volume and Sell Volume for each period.
Aggregated Delta Volume By Side: Displays the difference between Buy & Sell Volume as Delta (Down if Sell Vol - Up if Buy Vol)
Aggregated Cumulative Delta Volume: Displays the sum of Delta Volume as a line, candles or Heiken Aishi Candles. Great for observing Volume Flow and spotting divergences
- It is Possible to add an MA to the CVD and to color fill in between the indicator and the MA
- It is possible to reset the indicators basis to 0 periodically
ETS Prox Cumulative Volume Delta BBThis script is based on the work originally done by kprsa for the Monster Cumulative Delta indicator, but adds Bollinger Bands and upgrades it to version 4 from version 1.
It is an approximation of the Cumulative Delta Volume that is usually based on volume differences between market and limit orders, but because that data is not available, this indicator allocates a portion of the volume of a candle to the "upward" and "downward force" of each candle.
The upward force of a "Buy" candle is calculated by the High-Low
The downward force is calculated by (High-Close)+(Open-Low)
"Sell" candles are calculated in the same way just opposite
Total force=up force + down force
Up volume approximation = candle volume * up force/total force
Down volume approximation = candle volume * down force/total force
The result is similar to OBV, but not exactly the same, and allows for a "candle size" which you can't get with On Balance Volume.
I had never used a Cumulative Delta Volume indicator before, but when I started using it myself, it proved very effective when there was a deviation from price. It was also very effective in my opinion when Bollinger Bands was added to assess the standard deviation of the CDV compared to the Bollinger Band of price and looking for areas where the CDV reaction to hitting or getting close to the BB was different.
I hope you find it useful! Of course, it comes with no guarantee of profits or any investing advice whatsoever.
