Cumulative Volume Delta Line

3 авг. Cumulative Volume Delta Line (CVD)

Overview:
The Cumulative Volume Delta (CVD) indicator offers a clear and insightful analysis of market sentiment by measuring the net difference between buying and selling volumes. It tracks the cumulative volume of trades where the closing price is higher (indicative of buying) versus lower (indicative of selling) relative to the opening price or the previous closing price. This indicator is instrumental in identifying trends and potential reversals in the market by visualizing the cumulative net volume over time.

Key Features:

Anchor Period Customization:

Input: Anchor period (default: 1D)
Users can specify a custom anchor period to adjust the timeframe for which the cumulative volume is calculated, providing flexibility to tailor the analysis to different trading strategies and timeframes.
Lower Timeframe Analysis:

Input: Use custom timeframe (default: automatic)
Input: Lower timeframe (default: 1 minute)
The indicator scans lower timeframe data to approximate up and down volumes used in the delta calculation. Users can override the automatic selection by specifying a custom lower timeframe for more precise data analysis.
Up and Down Volume Calculation:

The indicator differentiates between buying and selling volume by comparing the current price with the open and previous close prices. This feature ensures accurate identification of market sentiment and trading pressure.
Security Lower Timeframe Integration:

Utilizes the request.security_lower_tf function to aggregate volume data from lower timeframes, offering a detailed view of market activity and cumulative volume trends.
Cumulative Volume Analysis:

Calculates cumulative volume, maximum volume, and minimum volume over the specified period, providing a comprehensive perspective on volume dynamics and potential support/resistance levels.
Visual Representation:

Plots the cumulative volume delta with color-coding to indicate positive (teal) or negative (red) net volume. This visual aid facilitates quick assessment of market sentiment, aiding traders in making informed decisions.

Usage:
The Cumulative Volume Delta indicator is designed for traders who seek deeper insights into market dynamics and volume trends. By understanding the net impact of buying and selling pressure, traders can make more informed decisions on entry and exit points, identify potential trend reversals, and enhance their overall trading strategy.