OPEN-SOURCE SCRIPT
Custom Date CVD
Updated
This indicator allows setting a custom date for the beginning of cumulative volume delta calculations.
Why is it important? CVD shows aggressiveness of buyers and sellers. And in order for a bull run to sustain you need aggressive buyers hitting the ask. If the price goes up, but CVD goes down - unlikely this bull trend will last long.
You might want to choose a recent top or bottom as the start point and check whether the aggressiveness of market participants corresponds to the price movement since that peak. For example on the chart above we can see that the price was going up and down, but the aggressiveness clearly points down. Does it mean that we will have a long bear market? No. It means that until the aggressiveness starts pointing up we should not expect a bull market. It might happen tomorrow, or might happen in a month. Nobody knows. But until it starts happening - don't expect the real bull.
Additionally, candles where the aggressiveness went the opposite direction from the price are marked with a blue dot above them.
Note: the smaller the custom time frame of the indicator - the more correct the results are. However, the drawback is that shorter the lookback period will be. The actual length will depend on your subscription level and the number of subcandles of the selected instrument.
Why is it important? CVD shows aggressiveness of buyers and sellers. And in order for a bull run to sustain you need aggressive buyers hitting the ask. If the price goes up, but CVD goes down - unlikely this bull trend will last long.
You might want to choose a recent top or bottom as the start point and check whether the aggressiveness of market participants corresponds to the price movement since that peak. For example on the chart above we can see that the price was going up and down, but the aggressiveness clearly points down. Does it mean that we will have a long bear market? No. It means that until the aggressiveness starts pointing up we should not expect a bull market. It might happen tomorrow, or might happen in a month. Nobody knows. But until it starts happening - don't expect the real bull.
Additionally, candles where the aggressiveness went the opposite direction from the price are marked with a blue dot above them.
Note: the smaller the custom time frame of the indicator - the more correct the results are. However, the drawback is that shorter the lookback period will be. The actual length will depend on your subscription level and the number of subcandles of the selected instrument.
Release Notes
Custom Date (now Anchored) CVD V2Changes:
- Changed the name to Anchored Custom Volume Delta (to be similar with AVWAP)
- Added up/down anomalies to the main chart
- Added levels of anomalies (thanks to cooney_s for the idea)
- Added divergencies. Both on ACVD and the main chart (thanks to j1nx7ek)
- Added Moving Average
- Added ability to show the CVD as either Candles or Line
- Added red/green background from the zero line (when it's displayed) to easier identify where we are now
- Added a table that displays the total number of anomalies since the last anchor change
- Added ability to reset CVD on the session open (useful for intraday traders)
- Changed the default timeframe to 1s when the selected timeframe is 1m
Release Notes
V2.1- Added option to show only the hidden divergences on the subchart and/or main chart.
- Added ability to customise the colours of the fills above / below the zero line.
- Added ability to customise the colours of divergencies.
- Added different moving average types.
- Added an option to show the volume chart in dollars (useful when you compare money flow between similar assets).
Release Notes
V2.2: Updated PineScript to V6Release Notes
V2.3- added option to calculate ACVD based on the actual price - useful if your chart shows non-standard candles like Heikin Ashi
- added option to show an extra zero line - useful if you trade multiple sessions (e.g. Sydney, Tokyo, etc)
- enabled hidden divergencies by default
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
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