OPEN-SOURCE SCRIPT
CVD Absorption + Confirmation [Orderflow & Volume]

This indicator detects bullish and bearish absorption setups by combining Cumulative Volume Delta (CVD) with price action, candlestick, and volume confirmations.
🔹 What is Absorption?
Absorption happens when aggressive buyers/sellers push CVD to new highs or lows, but price fails to follow through.
This often signals that limit orders are absorbing aggressive market orders, creating potential reversal points.
🔹 Confirmation Patterns
Absorption signals are only shown if they are validated by one of the following patterns:
🔹 Signals
✅ Bullish absorption confirmed → Green label below the bar.
❌ Bearish absorption confirmed → Red label above the bar.
Each label represents a potential reversal setup after orderflow absorption is validated.
🔹Alerts
Built-in alerts are included for both bullish and bearish confirmations, so you can track setups in real-time without watching the chart 24/7.
📌 How to Use:
🔹 What is Absorption?
Absorption happens when aggressive buyers/sellers push CVD to new highs or lows, but price fails to follow through.
- Bearish absorption: CVD makes a higher high, but price does not.
- Bullish absorption: CVD makes a lower low, but price does not.
This often signals that limit orders are absorbing aggressive market orders, creating potential reversal points.
🔹 Confirmation Patterns
Absorption signals are only shown if they are validated by one of the following patterns:
- Engulfing candle with low volume → reversal faces little resistance.
- Engulfing candle with high volume → strong aggressive participation.
- Pin bar with high volume → absorption visible in the wick.
- CVD flattening / slope reversal → shift in aggressive order flow.
🔹 Signals
✅ Bullish absorption confirmed → Green label below the bar.
❌ Bearish absorption confirmed → Red label above the bar.
Each label represents a potential reversal setup after orderflow absorption is validated.
🔹Alerts
Built-in alerts are included for both bullish and bearish confirmations, so you can track setups in real-time without watching the chart 24/7.
📌 How to Use:
- Best applied at key levels (supply/demand, VWAP, OR, liquidity zones).
- Look for confluence with your trading strategy before taking entries.
- Works on all markets and timeframes where volume is reliable.
Script open-source
In pieno spirito TradingView, il creatore di questo script lo ha reso open-source, in modo che i trader possano esaminarlo e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricorda che la ripubblicazione del codice è soggetta al nostro Regolamento.
Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.
Script open-source
In pieno spirito TradingView, il creatore di questo script lo ha reso open-source, in modo che i trader possano esaminarlo e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricorda che la ripubblicazione del codice è soggetta al nostro Regolamento.
Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.