Cumulative Volume Delta Candles

CVD Trend Candles

Visualize buying and selling pressure directly on your price candles. This indicator colors your candlesticks based on Cumulative Volume Delta (CVD), helping you see the underlying order flow driving price action.

WHAT IS CVD?

Cumulative Volume Delta estimates the difference between aggressive buying and selling volume on each bar. Positive delta indicates more aggressive buying; negative delta indicates more aggressive selling.

COLOR METHODS

▸ CVD Raw
The simplest view—candles are colored based purely on the raw delta of each bar.
• Cyan = Positive delta (net buying)
• Red = Negative delta (net selling)

▸ Rule-Based (Default)
Uses Heikin Ashi-smoothed CVD candles with intensity based on trend strength:
• Bright colors = Strong conviction (larger body + continuation)
• Medium colors = Moderate conviction (continuation)
• Dark colors = Weak/indecision (inside candles, hesitation)

▸ Size-Based
Colors intensity based on z-score of delta changes:
• Bright colors = Statistically significant delta (above strong threshold)
• Medium colors = Moderate delta (above moderate threshold)
• Dark colors = Normal/quiet delta

KEY FEATURES

◆ Kalman Filter Smoothing
Adaptive filtering reduces noise while staying responsive to genuine shifts in order flow. Adjust sensitivity with the Responsiveness and Kalman Gain settings.

◆ Inside Candle Rule
When enabled, prevents false signals from inside candles that show a direction change but lack conviction. The candle retains the previous trend's color (dimmed) instead of flipping.

◆ Session Anchoring
Optionally reset cumulative delta at a specific time (e.g., market open) for intraday analysis.

◆ Z-Score Thresholds
Fine-tune what constitutes "strong" vs "moderate" delta activity for Size-Based coloring.

HOW TO USE

1. Add the indicator to your chart
2. Set your chart type to "Line" or bring the indicator to front via Visual Order → Bring to Front
3. Select your preferred Color Method
4. Look for:
• Sequences of bright cyan candles → Strong buying pressure / bullish momentum
• Sequences of bright red candles → Strong selling pressure / bearish momentum
• Fading colors → Weakening conviction, potential reversal or consolidation
• Color flips → Shift in order flow dominance

Notes
• This indicator estimates delta from OHLCV data. For true order flow analysis, consider using tick or trade data from your broker/exchange.
• Works on all timeframes and instruments with volume data.
• Best used in conjunction with support/resistance levels, market structure, or other confluence factors.