OPEN-SOURCE SCRIPT

Erfy CVD

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Erfy CVD is a divergence indicator designed to identify potential reversals by comparing price movement with estimated cumulative volume delta.

A bullish divergence appears when price forms a lower low while CVD forms a higher low, suggesting that selling pressure may be weakening.

A bearish divergence appears when price forms a higher high while CVD forms a lower high, suggesting that buying pressure may be weakening.

The indicator confirms signals one candle after the pivot and automatically removes a divergence when its price level is swept. The CVD is estimated using candle volume and closing position because Pine Script does not provide true bid-and-ask order-flow data.

This indicator should be used as confirmation alongside market structure, liquidity, volume profile and other forms of analysis. It should not be treated as a standalone buy or sell signal.

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