OPEN-SOURCE SCRIPT
Cumulative Delta Divergence [forexobroker]
Cumulative Delta Divergence detects exhaustion patterns where price extends but cumulative tick-rule signed volume does not follow. The z-scores of cumulative delta and price over the same window are differenced; sustained gaps mark institutional positioning against the current move. Signals fire on EMA cross in the resolution direction.
🔶 ALGORITHM
1. signed_vol = volume * sign(close - close[1]).
2. cum_delta = sum(signed_vol, N).
3. delta_z = cum_delta / (stdev(signed_vol, N) * sqrt(N)).
4. price_z = (close - sma(close, N)) / stdev(close, N).
5. divergence = price_z - delta_z. Bear divergence when divergence >= threshold; bull when <= -threshold.
🔶 SIGNAL LOGIC
- Buy: bull divergence AND close crosses EMA up AND not already long AND cooldown elapsed AND barstate.isconfirmed.
- Sell: bear divergence AND close crosses EMA down.
- Position-lock state machine.
🔶 INPUTS
- Cumulative Window (default 40)
- Pullback EMA Length (default 8)
- Min Divergence Z (default 0.30)
- Cooldown Bars (default 4)
- Visual: dashboard, glow, EMA toggle, buy / sell colors
🔶 ALERTS
CDD Buy, CDD Sell, CDD Any Signal, CDD Bull Div On, CDD Bear Div On, CDD Strong Bear, CDD Strong Bull, CDD EMA Up, CDD Webhook JSON.
🔶 LIMITATIONS
- Tick-rule signed volume (sign of close - close[1]) is a proxy; true bid / ask delta requires order-book data not available in Pine.
- Forex broker volumes vary; instruments with consistent volume reporting produce cleaner divergences.
- Window N = 40 is the practical balance; shorter windows fire more but flag false divergences.
- Divergence resolution timing varies; some divergences last many bars before resolving.
🔶 ALGORITHM
1. signed_vol = volume * sign(close - close[1]).
2. cum_delta = sum(signed_vol, N).
3. delta_z = cum_delta / (stdev(signed_vol, N) * sqrt(N)).
4. price_z = (close - sma(close, N)) / stdev(close, N).
5. divergence = price_z - delta_z. Bear divergence when divergence >= threshold; bull when <= -threshold.
🔶 SIGNAL LOGIC
- Buy: bull divergence AND close crosses EMA up AND not already long AND cooldown elapsed AND barstate.isconfirmed.
- Sell: bear divergence AND close crosses EMA down.
- Position-lock state machine.
🔶 INPUTS
- Cumulative Window (default 40)
- Pullback EMA Length (default 8)
- Min Divergence Z (default 0.30)
- Cooldown Bars (default 4)
- Visual: dashboard, glow, EMA toggle, buy / sell colors
🔶 ALERTS
CDD Buy, CDD Sell, CDD Any Signal, CDD Bull Div On, CDD Bear Div On, CDD Strong Bear, CDD Strong Bull, CDD EMA Up, CDD Webhook JSON.
🔶 LIMITATIONS
- Tick-rule signed volume (sign of close - close[1]) is a proxy; true bid / ask delta requires order-book data not available in Pine.
- Forex broker volumes vary; instruments with consistent volume reporting produce cleaner divergences.
- Window N = 40 is the practical balance; shorter windows fire more but flag false divergences.
- Divergence resolution timing varies; some divergences last many bars before resolving.
Script de código abierto
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La información y las publicaciones no constituyen, ni deben considerarse como, asesoramiento o recomendaciones financieras, de inversión, de trading u otro tipo, proporcionadas o respaldadas por TradingView. Obtenga más información en Condiciones de uso.
Script de código abierto
Fiel al espíritu de TradingView, el creador de este script lo ha convertido en código abierto, para que los traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Aunque puede utilizarlo de forma gratuita, recuerde que cualquier republicación del código está sujeta a nuestras Normas internas.
🔵Gain access to our powerful tools : kestutisbalciunas.com/tradingview/
🔵Join our free telegram for updates : t.me/algotradingedge
All scripts & content provided by Forexobroker are for informational & educational purposes only.
🔵Join our free telegram for updates : t.me/algotradingedge
All scripts & content provided by Forexobroker are for informational & educational purposes only.
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como, asesoramiento o recomendaciones financieras, de inversión, de trading u otro tipo, proporcionadas o respaldadas por TradingView. Obtenga más información en Condiciones de uso.