Cumulative Volume Delta CVD
- Indicators
- Version: 1.0
- Activations: 5
JB Cumulative Volume Delta — See Who Is Buying and Who Is Selling
Price tells you WHAT happened. Volume tells you WHO did it. But standard volume indicators (OBV, Volume Profile) treat all volume the same — they cannot distinguish buying pressure from selling pressure.
CVD (Cumulative Volume Delta) solves this by decomposing each candle's volume into buy volume and sell volume using body/wick analysis. A bullish candle with a large body = mostly buy volume. A bearish candle with long wicks = mixed, but sell-dominant.
This creates a real-time picture of the battle between buyers and sellers that price alone cannot show.
What you see on the chart:
Buy/Sell Cloud — two EMAs (buy pressure and sell pressure) drawn as a colored filling. Green cloud = buyers dominate. Red cloud = sellers dominate. The cloud width shows HOW MUCH one side dominates.
Delta Histogram — raw buy minus sell volume per bar. Green bars = net buying. Red bars = net selling. Instantly see if the current bar is buyer or seller driven.
Strength Wave — EMA of the maximum pressure (buy or sell). Shows overall market energy. When strength is high, moves are real. When strength drops, the market is losing conviction.
HTF Strength — same strength calculation on a higher timeframe (configurable: M3, M5, M15). See if the bigger picture confirms or contradicts the current timeframe.
Squeeze Detection — when the cloud narrows below a threshold, the market is compressing. Squeeze often precedes explosive moves. The indicator flags this state automatically.
Chop Filter — counts how many times the cloud direction flips in a lookback window. Too many flips = choppy market = no edge. The indicator warns you to stay out.
Hysteresis — prevents false signals when the cloud flickers between bull and bear. Direction only confirms after N consecutive bars in the same direction.
Multi-Timeframe — configurable second timeframe for HTF confirmation. M1 chart with M5 CVD overlay? Done.
EA-Ready Buffers:
- Buffer 0-1: Buy EMA / Sell EMA (cloud filling)
- Buffer 2: Strength wave
- Buffer 3: Strength color (0=bull, 1=bear, 2=flat)
- Buffer 4: Delta histogram
- Buffer 5: Delta color
- Buffer 6: HTF Strength
- Buffer 7: HTF Strength color
- Buffer 8: Raw delta (calculation)
- Buffer 9: Combined signal (-3 to +3)
Works on any symbol (Forex, Indices, Crypto, Commodities) and any timeframe.
Why CVD instead of OBV:
- OBV adds entire bar volume as + or - based on close direction. Crude and inaccurate.
- CVD decomposes volume proportionally using body/wick ratio. Far more precise.
- CVD shows the cloud (buy vs sell balance), not just a cumulative line.
- Squeeze and chop detection built in — OBV has no concept of market state.
- Multi-timeframe confirmation in a single indicator.
