Cumulative Volume Delta Indicator in TradingView - Free - [TFlab]

The Cumulative Volume Delta (CVD) indicator is part of the TradingView indicators, designed to measure the strength or weakness of trends.

 This indicator analyzes buying and selling pressure by aggregating and combining the volume delta for each candlestick.

When the "CVD" moves upward, it indicates dominant buying pressure, and conversely, when the "CVD" moves downward, it reflects selling pressure.

Cumulative Volume Delta Indicator Specifications

Indicator at a Glance

The Cumulative Volume Delta (CVD) indicator evaluates buying and selling pressure and helps traders identify divergences. For example, a potential trend reversal is likely if the "CVD" does not align with price movement.

This indicator significantly aids in pinpointing Entry and Exit points for trades.

Bullish Trend Conditions

As illustrated in the Bitcoin (BTC) chart on a 15-minute time frame, the price forms a lower low, but the "CVD" chart forms a higher low.

This phenomenon indicates a divergence between the price trend and the "CVD" indicator.

The upward movement of the indicator, coupled with observing bullish divergence, could signal an opportunity to enter Buy trades.

Bearish Trend Conditions

Based on the GBP/USD currency pair analysis on a 1-hour time frame, the price forms a higher high, but the "CVD" chart forms a lower high.

 This event highlights the divergence between the price trend and the "CVD" indicator. The indicator's downward movement and observation of bearish divergence could signal an opportunity to enter sell trades.

Indicator Settings

• Cumulative Mode: Calculates data aggressively;
• Period: The number of periods for the indicator's calculation is set to 21;
• Market Ultra Data: Defines the market used for calculations.

Conclusion

The Cumulative Volume Delta (CVD) indicator is a practical tool for analyzing buying and selling pressure and detecting divergence in TradingView Oscillators.

You can calculate data across various markets like crypto, forex, and stocks in the indicator settings. Observing divergences and the direction of the indicator can play a crucial role in trading decisions.