CVD - Cumulative Volume Delta (Chart)

The CVD - Cumulative Volume Delta (Chart) indicator displays cumulative volume delta as an on-chart oscillator, utilizing intrabar analysis to provide more precise volume flow data relative to price action.

Usage

The Usage section describes how the script can be used to visualize market sentiment and net demand directly on the price chart. Unlike traditional CVD indicators that appear in a separate pane, this tool scales volume delta values to fit within price ranges.

• Identifying Sentiment Divergences: Users can look for instances where the price makes a new high but the CVD oscillator fails to do so (or vice versa), indicating a potential exhaustion in buying or selling pressure.
• Analyzing Volume Cycles: By utilizing the "CVD Resets" feature, traders can observe how volume accumulates during specific periods, such as a trading session or a trend cycle, rather than looking at an indefinite accumulation from the start of the chart.
• Intrabar Precision: The script allows users to adjust the granularity of the delta calculation. Higher precision (e.g., 1-minute intrabars) provides a more accurate view of "up" vs "down" volume but may limit the historical depth available on the chart.

Details

The script calculates volume delta by analyzing lower timeframe (LTF) bars within each chart bar. It categorizes volume based on intrabar polarity:

1. Price Movement: If the intrabar close is different from the open, volume is assigned based on that direction.
2. Price Gaps: If open and close are equal, it compares the current close to the previous intrabar close.
3. Last Known Polarity: If no movement is detected, it carries over the previous known polarity.

The indicator then sums these values (Cumulative Volume Delta) and resets the calculation based on user-defined intervals. To display this on the price chart, the script uses the VisibleChart library to dynamically scale the oscillator height so that the highest volume delta value aligns with the lowest price in the visible range.

Settings

General Settings

• CVD Resets: Determines when the cumulative calculation restarts (e.g., None, Fixed Timeframe, Session Start, or Trend Change).
• Intrabar Precision: Selects the timeframe used for intrabar analysis. Options range from "Least Precise" (highest historical coverage) to "Most Precise" (uses 1-minute data).
• Volume Delta Calculation: Choose between raw "Volume delta" or "Volume delta percent."
• Cumulative Values: Toggles between showing the total accumulated delta or the raw delta per individual bar.

Visuals

• CVD Style: Displays the data as a "Line" or "Histogram."
• Zone Height (%): Adjusts the vertical scale of the oscillator zones relative to the price chart.
• Hi/Lo Labels: Toggles text labels for the peak and trough delta values within each reset zone.
• Color Bars on Divergences: Changes the color of price candles when the price direction contradicts the volume delta direction.
• Information Box: Displays statistical data about the LTF used, including the number of intrabars analyzed.

FAQ

How can I access the CVD - Cumulative Volume Delta (Chart) indicator? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.

Why does the indicator stop showing data on older bars? This is due to the limit of intrabar data available for analysis. Selecting a "Less Precise" setting in the Intrabar Precision menu will allow the indicator to cover more historical chart bars.

What is the benefit of resetting CVD on trend changes? Resetting on trend changes (using Supertrend, Aroon, or SAR) allows traders to see if a specific price trend is supported by increasing volume delta or if the move is losing participation.