Cumulative Delta Volume + Periodic + EMA

The Cumulative Delta Volume + Periodic + EMA indicator provides a comprehensive look at buying and selling pressure by aggregating volume delta across multiple calculation modes. By analyzing the difference between aggressive buyers and sellers, traders can better assess market sentiment, identify trend exhaustion, and spot potential price reversals.

Usage

The tool is primarily used to identify the relationship between price action and market volume.

• Trend Confirmation: When the indicator moves in the same direction as the price, it confirms the strength of the current trend. An upward-sloping CVD confirms a bullish trend, while a downward-sloping CVD confirms a bearish trend.
• Identifying Exhaustion: If the price reaches a new high but the CVD fails to reach a new high, it indicates buyer exhaustion. Conversely, if the price hits a new low but the CVD does not follow, it suggests seller exhaustion and a possible reversal.
• Absorption Divergence: Large movements in CVD without significant price movement suggest absorption. For example, if CVD rises sharply while prices stay flat, sellers are likely absorbing the buying pressure, which could lead to a sell-off.

Details

Cumulative Volume Delta (CVD) is derived from Volume Delta, which is the difference between buying and selling pressure for each individual candle. This script calculates buying and selling volume based on the candle's close relative to its high-low range.

The indicator offers three distinct calculation methods to suit different trading styles:

1. Total: A running sum of all delta values from the start of the chart data.
2. Periodic: A rolling sum of delta over a user-defined window.
3. EMA: An Exponential Moving Average of the delta values to smooth out fluctuations.

A unique "Market Ultra Data" feature allows users to aggregate volume from up to 26 different brokers (Forex or Crypto), providing a more reliable representation of global volume than a single data source.

Settings

General Settings

• Cumulative Mode: Selects the calculation method (Total, Periodic, or EMA).
• Period: Determines the lookback window for the Periodic sum and EMA calculations.

Market Ultra Data

• Ultra Data Toggle: Enables the aggregation of volume from multiple major brokers to increase data reliability.
• Market: Allows the user to specify the asset class (Forex, Crypto, or Stock) to ensure the correct broker list is used for volume aggregation.

FAQ

How do I use this indicator?

You can use the Cumulative Delta indicator to spot divergences between price and volume, which often signal upcoming trend reversals or momentum shifts.

What is the benefit of using "Ultra Data"?

The Ultra Data feature aggregates volume from 26 large brokers, providing a broader view of market activity rather than relying on a single exchange or broker's data.

How can I access this script?

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