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CVD Smart Reversal

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CVD Smart Reversal - Indicator Description

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🎯 OVERVIEW

Advanced reversal detection system based on Cumulative Volume Delta (CVD) analysis with intelligent quality filtering. Each signal is rated 1-5 stars based on multiple confirmation factors.

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🌟 KEY FEATURES

1. Quality Score System (⭐1-5)
• 5 independent criteria evaluate each signal
• Filter weak setups - show only 3+ star signals
• Higher scores = higher probability setups

2. Adaptive Thresholds
• Automatically adjusts to market volatility
• High volatility = stricter criteria
• Works across all market conditions

3. Volume Context Analysis
• Compares current vs historical volume
• Calculates buy/sell pressure (requires >60%)
• Filters reversals with weak volume

4. Multi-Timeframe Confirmation (Optional)
• Validates signals on higher timeframe
• Ensures trading with the trend
• Reduces counter-trend entries

5. Smart Signal Management
• Minimum 5-bar spacing between signals
• Automatic label cleanup (max 20)
• Clean chart, no clutter

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📊 HOW IT WORKS

CVD Calculation:
Custom volume delta calculation using intrabar polarity estimation.

Signal Detection:
Combines CVD reversal, candlestick patterns (Hammer, Shooting Star, Engulfing, Pin Bar), and divergence analysis.

Quality Scoring:
Each signal scores 0-5 points based on:
• CVD strength (statistical deviation)
• Pattern quality (professional recognition)
• Divergence presence
• Volume context (ratio + pressure)
• Trend confirmation (MTF or acceleration)

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🎮 USAGE MODES

Sniper Mode (High Quality):
• Min Score: 4-5 stars
• MTF: ON
• Result: 2-5 signals/day, highest win-rate

Active Mode (Balanced):
• Min Score: 3 stars
• MTF: OFF
• Result: 5-15 signals/day, good balance

Scalping Mode (High Frequency):
• Min Score: 2 stars
• Divergence: Weak
• Result: Many signals, fast execution needed

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💡 BEST PRACTICES

• Use on liquid markets with reliable volume data
• Combine with key support/resistance levels
• Pay attention to quality scores - 4-5★ have significantly higher success
• Enable MTF confirmation for intraday trading
• Use stricter settings during high-impact news events

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⚙️ DEFAULT SETTINGS

• Quality Filter: ON
• Minimum Score: 3 stars
• MTF Confirmation: OFF
• Volume Analysis: ON
• Divergence Strength: Medium

These settings provide 5-15 quality signals per day on active instruments.

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🔔 ALERTS

Four alert types available:
• Strong Bullish Reversal (4-5★ only)
• Strong Bearish Reversal (4-5★ only)
• Regular Bullish Reversal (all qualified)
• Regular Bearish Reversal (all qualified)

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⚠️ LIMITATIONS

• Requires volume data (not suitable for markets without volume)
• MTF confirmation adds lag by design
• Lower timeframes may need adjusted settings
• Quality filter reduces signal frequency by design

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🎯 ORIGINALITY

This indicator combines multiple unique elements:
• Multi-factor quality scoring (not found in other CVD tools)
• Adaptive volatility-based thresholds
• Volume pressure calculation with directional filter
• Integrated MTF confirmation within scoring system
• Smart label management with automatic cleanup

The quality scoring system transforms CVD analysis from binary signals into a ranked opportunity system, allowing traders to prioritize setups based on confluence strength.

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📈 DISPLAY ELEMENTS

• Background highlighting on signal bars
• Triangle markers at entry points
• Labels showing CVD, Delta, Divergence, Quality Score, Volume flag
• Real-time info panel with CVD metrics
• Clean visual presentation

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✅ SUITABLE FOR

• Crypto (BTC, ETH, etc.)
• Stocks (AAPL, TSLA, SPY, etc.)
• Futures (ES, NQ, CL, etc.)
• Forex (brokers with volume data)
• All timeframes (1m to 1D)

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Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.