Cumulative Delta Volume with Divergences
This script, **Cumulative Delta Volume (CDV) with Advanced Divergences**, is a powerful tool designed to reveal the underlying net buying and selling pressure in the market. Unlike standard volume, Cumulative Delta provides a clearer picture of market sentiment by calculating the volume-weighted difference between aggressive buyers and sellers within each candle.
### 🔹 What is Cumulative Delta Volume?
The CDV calculation in this script uses the relationship between the candle's open, high, low, and close to estimate the "delta" (the net difference in volume) for each bar. These values are then accumulated over time to create a continuous oscillator that tracks the flow of capital.
### 🔹 Key Features
* **Dynamic Visual Styles**: Choose between **Candle** or **Line** representations of the CDV data to best suit your analysis.
* **Integrated Divergence Engine**: Automatically detects both **Regular** and **Hidden** divergences between price and CDV.
* **Directional Coloring**: Uses industry-standard green (#089981) for bullish signals and red (#f23645) for bearish signals.
* **Customizable Pivot Search**: Fine-tune the lookback periods (`Left` and `Right`) and the detection range (`Min` and `Max`) to match any timeframe or asset.
* **Moving Average Support**: Includes an optional 50-period SMA to help identify the broader trend of the delta volume.
### 🔹 How to Trade with Divergences
* **Regular Bullish Divergence**: Occurs when Price makes a *Lower Low* while CDV makes a *Higher Low*. This suggests seller exhaustion and a potential bullish reversal.
* **Regular Bearish Divergence**: Occurs when Price makes a *Higher High* while CDV makes a *Lower High*. This suggests buyer exhaustion and a potential bearish reversal.
* **Hidden Bullish Divergence**: Occurs when Price makes a *Higher Low* while CDV makes a *Lower Low*. This often signals bullish trend continuation.
* **Hidden Bearish Divergence**: Occurs when Price makes a *Lower High* while CDV makes a *Higher High*. This often signals bearish trend continuation.
### 🔹 Settings
* **Style**: Toggle between CDV Candles or a single Line.
* **Pivot Lookbacks**: Adjust the sensitivity of the pivot points used for divergence detection.
* **Max/Min Range**: Define how far apart (in bars) two pivots can be to qualify as a divergence.
**Disclaimer**: *This indicator is for educational and informational purposes only and does not constitute financial advice. Always use proper risk management.*
### 🔹 What is Cumulative Delta Volume?
The CDV calculation in this script uses the relationship between the candle's open, high, low, and close to estimate the "delta" (the net difference in volume) for each bar. These values are then accumulated over time to create a continuous oscillator that tracks the flow of capital.
### 🔹 Key Features
* **Dynamic Visual Styles**: Choose between **Candle** or **Line** representations of the CDV data to best suit your analysis.
* **Integrated Divergence Engine**: Automatically detects both **Regular** and **Hidden** divergences between price and CDV.
* **Directional Coloring**: Uses industry-standard green (#089981) for bullish signals and red (#f23645) for bearish signals.
* **Customizable Pivot Search**: Fine-tune the lookback periods (`Left` and `Right`) and the detection range (`Min` and `Max`) to match any timeframe or asset.
* **Moving Average Support**: Includes an optional 50-period SMA to help identify the broader trend of the delta volume.
### 🔹 How to Trade with Divergences
* **Regular Bullish Divergence**: Occurs when Price makes a *Lower Low* while CDV makes a *Higher Low*. This suggests seller exhaustion and a potential bullish reversal.
* **Regular Bearish Divergence**: Occurs when Price makes a *Higher High* while CDV makes a *Lower High*. This suggests buyer exhaustion and a potential bearish reversal.
* **Hidden Bullish Divergence**: Occurs when Price makes a *Higher Low* while CDV makes a *Lower Low*. This often signals bullish trend continuation.
* **Hidden Bearish Divergence**: Occurs when Price makes a *Lower High* while CDV makes a *Higher High*. This often signals bearish trend continuation.
### 🔹 Settings
* **Style**: Toggle between CDV Candles or a single Line.
* **Pivot Lookbacks**: Adjust the sensitivity of the pivot points used for divergence detection.
* **Max/Min Range**: Define how far apart (in bars) two pivots can be to qualify as a divergence.
**Disclaimer**: *This indicator is for educational and informational purposes only and does not constitute financial advice. Always use proper risk management.*
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