This is the matching Strategy version of Indicator of the same name. As a member of the K1m6a Lions discussion community we often use versions of the Cumulative Volume Delta indicator as one of our primary tools along with RSI, RSI Divergences, Open interest, Volume Profile, TPO and Fibonacci levels.
We also discuss visual interpretations of CVD Divergences across multiple time frames much like RSI divergences.
RSI Divergences can be identified as possible Bullish reversal areas when the RSI is making higher low points while the price is making lower low points. RSI Divergences can be identified as possible Bearish reversal areas when the RSI is making lower high points while the price is making higher high points.
CVD Divergences can also be identified the same way on any timeframe as possible reversal signals. As with RSI, these Divergences often occur as a trend's momentum is giving way to lower volume and areas when profits are being taken signaling a possible reversal of the current trending price movement. Hidden Divergences are identified as calculations that may be signaling a continuation of the current trend.
Having not found any public domain versions of a CVD Divergence indicator I have combined some public code to create this indicator and matching strategy. The calculations for the Cumulative Volume Delta keep a running total for the differences between the positive changes in volume in relation to the negative changes in volume. A relative upward spike in CVD is created when there is a large increase in buying vs a low amount of selling. A relative downward spike in CVD is created when there is a large increase in selling vs a low amount of buying.
In the settings menu, the is a drop down to be used to view the results in alternate timeframes while the chart remains on current timeframe. The Lookback settings can be adjusted so that the divs show on a more local, spontaneous level if set at 1,1,60,1. For a deeper, wider view of the divs, they can be set higher like 7,7,60,7. Adjust them all to suit your view of the divs.
To create this indicator/strategy I used a portion of the code from "Cumulative Volume Delta" by @ contrerae which calculates the CVD from aggregate volume of many top exchanges and plots the continuous changes on a non-overlay indicator. For the identification and plotting of the Divergences, I used similar code from the Tradingview Technical "RSI Divergence Indicator"
This indicator should not be used as a stand-alone but as an additional tool to help identify Bullish and Bearish Divergences and also Bullish and Bearish Hidden Divergences which, as opposed to regular divergences, may indicate a continuation.
No verdadeiro espírito do TradingView, o autor desse script o publicou como código aberto, para que os traders possam compreendê-lo e analisá-lo. Parabéns ao autor! Você pode usá-lo gratuitamente, mas a reutilização desse código em publicações é regida pelas Regras da Casa. Você pode favoritá-lo para usá-lo em um gráfico.
As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.