Anchored Cumulative Volume Delta

The Anchored Cumulative Volume Delta indicator tool allows traders to track the cumulative difference between buying and selling volume starting from a specific user-defined anchor point. This script helps identify the underlying aggressiveness of market participants to confirm price trends or spot potential reversals through volume-price divergences.

Usage

The Usage section focuses on identifying the balance of power between buyers and sellers since a significant market event, such as a recent peak or valley.

• Trend Confirmation: In a sustained bull run, the CVD should ideally rise alongside price, indicating aggressive buying at the ask. If price increases while CVD decreases, it suggests the trend may lack conviction.
• Anomaly Detection: The script identifies "Anomalies" where price movement and volume delta move in opposite directions. These are highlighted with visual markers on both the indicator pane and the main chart.
• Divergence Analysis: Use the divergence features to find multi-day discrepancies between price action and cumulative delta, which often precede trend shifts.
• Anchor Points: Users can set the calculation to reset based on a specific Date or a recurring Period (e.g., Daily, Weekly), making it adaptable for both swing trading and intraday sessions.

Details

The indicator utilizes lower timeframe (LTF) data to provide a more granular look at volume distribution within each candle. By scanning sub-candles, the script approximates whether volume was associated with a move toward the high or low, resulting in a more accurate delta than standard "up/down" volume methods.

Note: The precision of the calculation is dependent on the available historical LTF data. Shorter LTFs provide higher accuracy but may limit the total historical lookback available on the chart.

Settings

General

• Anchor Type: Choose between "Date" (specific point in time) or "Period" (recurring resets).
• Display as: Toggle between Candle or Line representations for the CVD.
• Reset on market open: Resets the calculation at the start of each trading session.
• Show Chart in $: Converts the volume delta into a dollar-value flow for easier comparison across different asset prices.
• Use Real Prices: Ensures calculations use standard price data even when the chart is set to Heikin Ashi or other non-standard types.

CVD Timeframe

• Use Custom Timeframe: Manually select the sub-candle timeframe for delta calculation.

Anomalies & Divergences

• Show Anomalies: Toggles visual markers for price/volume discrepancies.
• Show Total Anomalies Table: Displays a summary of bullish and bearish anomalies over the selected period.
• Divergence Settings: Controls lookback ranges and pivot identification for multi-day divergences.

Moving Average & Zero Line

• Show Moving Average: Adds a customizable MA (SMA, EMA, VWMA, etc.) to the CVD line.
• Zero Line Fill: Colors the area between the CVD and the zero line based on whether the cumulative delta is positive or negative.

FAQ

How do I access Anchored Cumulative Volume Delta?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.

Why does the indicator look different on different timeframes?

The indicator relies on lower timeframe data. Depending on your subscription level and the asset, the amount of available historical intraday data varies, which can affect the starting point of the calculation.

What is the difference between an Anomaly and a Divergence?

An anomaly is a single-candle event where the price and delta move in opposite directions. A divergence is a broader structural pattern occurring over multiple candles or pivots.