CVD Trendline

Here's a natural description for TradingView:

CVD-Enhanced Multi-Filter Trendline - Institutional Grade Trend System

WHAT IT DOES

This is an institutional-grade trend indicator that combines Cumulative Volume Delta analysis with advanced signal processing filters. It plots a dynamic trendline on your chart that adapts to buying and selling pressure in real-time, surrounded by a pressure-sensitive cloud that changes opacity based on order flow intensity.

The core innovation here is the integration of CVD (the difference between buying and selling volume) directly into the trend calculation. This means the trendline doesn't just follow price - it follows the money. When smart money is accumulating or distributing, you'll see it in the line movement and cloud behavior before it's obvious in price action.

KEY FEATURES

Three Professional Filter Modes - Choose between Standard (Ehlers filters), Kalman (predictive HFT-style), or Butterworth (signal processing). Each has different characteristics for lag versus smoothness.

Advanced CVD Calculation - Uses intrabar analysis when available to accurately measure buying versus selling pressure within each candle. Falls back to basic CVD on higher timeframes.

Laguerre Integration - Combines Laguerre RSI with CVD momentum for a unique blend that catches both momentum shifts and volume flow changes.
Pressure Heatmap Cloud - The cloud around the trendline darkens when buying or selling pressure intensifies. Think of it as a visual intensity meter.
Divergence Detection - Automatically spots when price makes a new high but CVD doesn't confirm, or vice versa. These are your early warning signals.
Zero-Lag Options - Multiple tools to reduce lag including Ehlers Instantaneous Trendline and Super Smoother filters.

UNDERSTANDING THE FILTER MODES
This is where the indicator gets interesting. You have three completely different approaches to smoothing and processing the signal.

Standard Mode - Uses the original Ehlers-based filters. This is proven and reliable. Good balance between smoothness and responsiveness. If you're new to this indicator, start here.
Kalman Filter Mode - This is what high-frequency trading firms use. It's a 2-state filter that tracks both position and velocity, which means it can actually predict where price is headed. It catches turns AS they happen, not after. The tradeoff is it can be a bit twitchy in choppy conditions. Best for active trading and scalping.

Butterworth Filter Mode - Borrowed from professional signal processing. This filter has a "maximally flat" frequency response, which means it removes noise without distorting the signal. Think of it like a high-quality audio filter. Best for swing trading and higher timeframes where you want maximum noise rejection.

HOW THE CVD INTEGRATION WORKS
Traditional trendlines only look at price. This one incorporates CVD, which measures the battle between buyers and sellers. When CVD is positive and rising, it adds upward pressure to the trendline. When CVD is negative and falling, it adds downward pressure.
The result is a trendline that can start turning before price does. If smart money is selling into a rally, CVD goes negative and the trendline will start to flatten or turn down even if price is still rising. That's your early exit signal.

The indicator uses intrabar analysis when possible, which means on lower timeframes it can see the buying and selling that happens within each candle. This is way more accurate than just looking at whether the candle closed green or red.
HOW TO USE IT

The Trendline - When it's lime green and rising, look for long opportunities. When it's purple and falling, look for shorts. The color changes based on slope direction with hysteresis, so it won't flip back and forth on every minor wiggle.
The Cloud - This is your volatility and pressure buffer. In strong trends, price will bounce off the cloud edges. When price breaks through the cloud against the trend, that's often a reversal warning.

Cloud Opacity - This is unique and important. When the cloud is dark and opaque, pressure is intense. When it's faded and transparent, pressure is weak. Dark cloud in a trend = strong conviction. Faded cloud = weak trend or transition zone.
Divergences - The indicator automatically detects when price and CVD disagree. These divergence points are often where reversals start. Watch for price making new highs with the cloud fading and CVD showing weakness.

The Dashboard - Upper right corner shows you what mode you're in, CVD status, volume pressure percentage, trend direction, and intensity tier. Glance at this before taking any trade.

SETTINGS BREAKDOWN

Filter Mode - This is your first decision. Standard for balanced, Kalman for aggressive/scalping, Butterworth for smooth/swing trading.

Laguerre Gamma - Lower values (0.2-0.4) are more responsive, higher values (0.6-0.8) are smoother. Default 0.5 is a good starting point.

CVD Lookback - How many bars to use for CVD normalization. Lower values (10-15) for faster markets, higher values (25-30) for slower markets.

ATR Multiplier - Controls cloud width. Higher values give you more breathing room, lower values keep the cloud tight.

Cloud Width Multiplier - Another way to control cloud size. 0.5 is default. Increase if the cloud is too tight, decrease if it's too wide.

Pressure Amplification - Makes the heatmap effect more dramatic. Higher values mean you'll see darker clouds sooner. Default 1.5 is good.

Heatmap Tiers - How many distinct opacity levels. Lower numbers (3-5) make transitions more visible, higher numbers (7-10) make it smoother.

KALMAN FILTER SETTINGS EXPLAINED

If you choose Kalman mode, you get extra controls:
Measurement Noise - This is your responsiveness dial. Lower (0.2-0.3) for scalping and fast response. Higher (0.4-0.5) for swing trading and stability.

Process Noise - Model uncertainty. Higher values let it adapt faster to volatility. Use 0.03-0.04 in crypto or volatile markets, 0.02-0.025 in stocks.

Velocity Prediction - This is the magic. It's how far ahead the Kalman filter looks. 0.6 means it's showing you where price is likely to be 60% of the way into the next bar. For scalping, 0.5-0.7 is optimal. For swing trading, drop it to 0.3-0.4.

Show Velocity Vector - Turn this on to see a small line showing where the Kalman filter thinks price is heading. Useful for learning how it works.

BEST PRACTICES

Start with Standard mode and default settings. Get comfortable with how the indicator behaves before experimenting with Kalman or Butterworth.

Watch the intensity tier in the dashboard. Trades taken when intensity is 4/5 or 5/5 tend to have better follow-through than trades at 1/5 or 2/5.

Use the cloud as your stop loss guide. If you're long and price closes through the lower cloud boundary, consider exiting or tightening stops.

Pay attention to cloud color transitions. When the cloud is dark purple in a downtrend or dark lime in an uptrend, that's high-conviction movement. Faded clouds mean weak hands.

Don't ignore divergences. When the dashboard shows CVD negative but price is rising, or CVD positive but price is falling, be cautious. The trend might be running on fumes.

In Kalman mode, watch the velocity indicators in the dashboard. Double up arrows (⬆⬆) mean strong acceleration. That's momentum you can trade.

PROS

Multi-dimensional analysis - Combines price, volume, momentum, and pressure in one clean visual.

Professional-grade filters - You're using the same math that HFT firms and aerospace engineers use.

Early turn detection - The CVD integration lets you spot reversals before they're obvious in price.

Highly customizable - Three completely different filter modes plus dozens of settings to dial it in for your style.

Intrabar precision - When available, the advanced CVD calculation gives you institutional-level order flow data.

Visual clarity - The pressure heatmap makes it obvious when conviction is high versus when it's weak.
Works on all markets - Stocks, crypto, forex, futures. The math is universal.

CONS

Complexity overload - There are a lot of settings. It can be overwhelming for beginners. Start with defaults and change one thing at a time.

Kalman can be twitchy - In Kalman mode with aggressive settings, you might get false signals in choppy conditions. It's optimized for trending markets.

Requires volume data - The CVD calculations need reliable volume. On some forex pairs or exotic instruments, volume data is unreliable or unavailable.

Computational load - With advanced CVD and Kalman filtering running, this indicator does a lot of math. You might see lag on older devices or with many indicators loaded.

Learning curve - Understanding the difference between the filter modes and how to optimize settings takes time and experimentation.
Not a standalone system - This shows you the trend and pressure, but you still need to decide entries, exits, and risk management.

TIPS FROM MY TESTING

The indicator shines on the 5-minute to 1-hour timeframes for day trading. For swing trading, it works well on 4-hour to daily.

In Kalman mode with velocity prediction at 0.6, I've found the best entries are when the trendline turns AND the intensity tier is at least 3/5. Those setups have conviction.
Standard mode is actually excellent for beginners despite being called "standard." It's stable and reliable.

Butterworth mode is underrated for swing trading. The noise rejection is phenomenal on daily charts.

The CVD intrabar precision setting matters. On 5-minute charts, use "Covering less chart bars" for precision. On hourly charts, use "Covering some chart bars" for coverage.

Watch for cloud squeezes. When the cloud gets very narrow and then starts expanding with darkening opacity, that's often the start of a big move.

Divergence detection is most reliable on 15-minute and above timeframes. Below that, you get too many false divergences.

COMBINING WITH OTHER TOOLS

This pairs beautifully with any oscillator. Use this for trend direction and the cloud for context, then use RSI or MACD to time exact entries.

Volume profile works great with this. The CVD shows you buying versus selling pressure, volume profile shows you where the fighting is happening.

Use a higher timeframe version for bias. If the 1-hour chart is lime with 5/5 intensity, take only longs on the 5-minute chart.

Support and resistance zones become more powerful when combined with cloud bounces. If price bounces off the cloud AT a key level, that's a high-probability setup.

UNDERSTANDING THE DASHBOARD

Filter - Shows which mode you're in. Kalman displays as KALMAN in aqua, Butterworth as BUTTER in yellow, Standard in gray.

CVD Mode - Shows ADVANCED if intrabar analysis is working, BASIC if it's using fallback. Advanced is more accurate.

CVD - Shows whether cumulative volume delta is positive or negative. This is your order flow direction.

Vol Pressure - Percentage showing buying versus selling pressure right now. Positive means more buying, negative means more selling.

Trend - Current trend direction. BULL or BEAR.

Intensity - Shows the current pressure tier and, in Kalman mode, velocity arrows. This is your conviction meter.

ALERT SYSTEM

The indicator fires alerts when the trend changes from bullish to bearish or vice versa. These are clean alerts with hysteresis built in, so you won't get spammed during sideways chop.

This indicator represents a significant amount of research into institutional-level trend detection. It's not simple, but it's powerful. The combination of CVD integration and professional filter modes gives you an edge that basic moving averages can't provide.

The key is choosing the right filter mode for your trading style and timeframe. Kalman for aggressive scalping, Butterworth for smooth swinging, Standard for reliable balance.

Take the time to understand how the pressure heatmap works. That fading and darkening of the cloud is telling you something important about market conviction. Strong trends have dark clouds. Weak trends or reversals have faded clouds.

Backtest it thoroughly on your markets. Every instrument has its own personality. What works on ES futures might need adjustment for Bitcoin or EUR/USD.

This is a professional tool. Treat it seriously, learn it properly, and it can give you insights that most retail traders never see.