CVD Divergences (cdikici71 x tncylyv)

CVD Divergence [Inspired by cdikici71]
Summary
This indicator brings the powerful and creative divergence detection logic from cdikici71's popular "cd_RSI_Divergence_Cx" script to the world of volume analysis.
While RSI is a fantastic momentum tool, I personally choose to rely on volume as a primary source of truth. This script was born from the desire to see how true buying and selling pressure—measured by Cumulative Volume Delta (CVD)—diverges from price action. It takes the brilliant engine built by cdikici71 and applies it to CVD, offering a unique look into market conviction.
What is Cumulative Volume Delta (CVD)?
CVD is a running total of volume that transacted at the ask price (buying) minus volume that transacted at the bid price (selling). In simple terms, it shows whether buyers or sellers have been more aggressive over a period. A rising CVD suggests net buying pressure, while a falling CVD suggests net selling pressure.
Core Features
• Divergence Engine by cdikici71: The script uses the exact same two powerful methods for finding divergences as the original RSI version:
o Alignment with HTF Sweep: The default, cleaner method for finding high-probability divergences.
o All: A more sensitive method that finds all possible divergences.
• Anchored CVD Periods: You can choose to reset the CVD calculation on a Daily, Weekly, or Monthly basis to analyze buying and selling pressure within specific periods. Or, you can leave it on Continuous to see the all-time flow.
• Automatic Higher Timeframe (HTF) Alignment: To remove the guesswork, the "Auto-Align HTF" option will automatically select a logical higher timeframe for divergence analysis based on your current chart (e.g., 15m chart uses 4H for divergence, 1H chart uses 1D, etc.). You can also turn this off for full manual control.
• Fully Customizable Information Table: An on-screen table keeps you updated on the divergence status. You can easily adjust its Position and Size in the settings to fit your chart layout.
• Built-in Alerts: Alerts are configured for both Bullish and Bearish divergences to notify you as soon as they occur.
How to Use This Indicator
The principle is the same as any divergence strategy, but with the conviction of volume behind it.
• 🔴 Bearish Divergence: Price makes a Higher High, but the CVD makes a Lower High or an equal high. This suggests that the buying pressure is weakening and may not be strong enough to support the new price high.
• 🟢 Bullish Divergence: Price makes a Lower Low, but the CVD makes a Higher Low or an equal low. This suggests that selling pressure is exhausting and the market may be ready for a reversal.
Always use divergence signals as a confluence with your own analysis, support/resistance levels, and market structure.
Huge Thanks and Credit
This script would not exist without the brilliant and creative work of @cdikici71. The entire divergence detection engine, the visualization style, and the core logic are based on his original masterpiece, "cd_RSI_Divergence_Cx". I have simply adapted his framework to a different data source.
If you find this indicator useful, please go and show your support for his original work!
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Disclaimer: This is a tool for analysis, not a financial advice signal service. Please use it responsibly as part of a complete trading strategy.