Cumulative Volume Delta Profile and Heatmap

The Cumulative Volume Delta Profile and Heatmap indicator measures buying vs selling pressure by rendering price-aligned CVD profiles and Point of Control (POC) while detecting classical CVD divergences. It provides a multi-view workstation to help traders identify who is in control, where market participation is clustered, and when price effort is failing to produce results.

Usage

The Usage section focuses on interpreting the various visual components to gauge market initiative and participation.

CVD Profile and Heatmap

The CVD Profile segments the price range into bins, accumulating the net delta at each level.

• Thick Right Wing: When "Split Buy/Sell" is enabled, a large right wing indicates significant buy initiative at that price level.
• Thick Left Wing: Indicates heavy sell initiative concentrated at that level.
• Heatmap Intensity: Brighter blocks behind price indicate stronger historical net initiative. These zones often act as magnets or significant support/resistance shelves.
• Point of Control (POC): This marks the price level with the highest absolute CVD accumulation. Traders often look for reactions or rotations around this level.

Divergence Engine

The tool automatically detects discrepancies between price action and delta using pivot logic.

• Bearish Divergence: Occurs when price makes a higher high, but CVD fails to do so. This suggests the upward move is "running on fumes" and may pause or reversal.
• Bullish Divergence: Occurs when price prints a lower low while CVD stays higher, indicating a lack of selling initiative and a potential bounce.

Details

The script operates by aggregating volume delta from a lower timeframe into a user-defined Anchor Timeframe. This ensures that the cumulative delta reflects a specific narrative (e.g., Daily trend) regardless of the chart's current resolution.

The profile construction splits the recent price range into granular bins. As price moves through these bins, the delta contribution is added to the running total for that specific price level. The divergence model utilizes a "Delta Tolerance" setting to prevent false positives from near-miss pivots, ensuring that only significant failures in initiative are labeled.

Settings

Delta Source

• Anchor Timeframe: Sets the higher timeframe for CVD accumulation.
• Custom Lower TF / Lower Timeframe: Allows manual selection of the sampling frequency for delta calculation.

Pivot Logic

• Pivot Left / Right: Determines the number of bars required to confirm a swing high or low.
• Delta Tolerance: A small buffer to avoid triggering divergences on nearly identical CVD values.

CVD Profile

• Show CVD Profile: Toggles the visibility of the profile histogram.
• Split Buy/Sell CVD: Separates positive and negative delta into distinct sides of the profile.
• Show Heatmap: Enables the semi-transparent intensity blocks behind price action.
• Show POC / POC Color: Controls the visibility and color of the Point of Control line.
• Profile Granularity: Adjusts the number of bins used to segment the price range.
• Profile Offset / Width / Position: Configures the physical placement and scale of the profile on the chart.

Visual Settings

• Bullish/Bearish Div Color: Sets colors for divergence artifacts.
• Show Divergence Lines/Labels: Toggles visual annotations for pivot connections.
• Plot CVD: Displays the cumulative delta as a column plot in the indicator pane.
• Show Statistics / Position: Toggles the summary table containing total CVD, Buy/Sell percentages, and Delta Ratio.

FAQ

How do I access the Cumulative Volume Delta Profile and Heatmap?

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

Why is the indicator showing a "No volume" error?

CVD calculations require exchange-reported volume data. If the symbol is synthetic or does not provide volume (like some Forex pairs or indices), the script cannot calculate delta.

What does the Delta Ratio in the stats panel mean?

The Delta Ratio represents Buy Volume divided by Sell Volume. A value above 1.0 suggests aggressive buyers are in control, while a value below 1.0 suggests aggressive sellers are leading.