CVD 5 lines configurable

ENG:
CVD = Cumulative Volume Delta

Volume delta in this script is calculated as an approximation:

if the candle is bullish (close > open) → delta = +volume

if the candle is bearish (close < open) → delta = −volume

if it’s a doji (close == open) → delta = 0

Then the script creates a cumulative sum over time (ta.cum(delta)), meaning:

when buying pressure dominates → CVD rises

when selling pressure dominates → CVD falls

This is not “true” bid/ask delta (TradingView usually doesn’t have tape data), but a practical approximation based on candle direction and volume.

What the 5 lines represent

You have 5 lines in the panel:

Line 1: CVD (raw cumulative delta)

Line 2: MA on CVD (e.g. EMA 21)

Line 3: MA on CVD (e.g. EMA 50)

Line 4: MA on CVD (e.g. EMA 200)

Line 5: MA on CVD (custom, e.g. 100)

For lines 2–5 you can set:

MA type: EMA / SMA / RMA / WMA

length

color

line width

visibility (on/off)

How to read it in practice

CVD above its MAs → buying dominance (demand momentum)

CVD below its MAs → selling dominance (supply momentum)

CVD crossing an MA or shorter MA crossing a longer MA → change in demand/supply momentum

the longer the MA (e.g. 200), the more it reflects the background / volume trend

Divergences: what the ^ and v markers mean

The script detects regular divergences between price and CVD at pivots (local highs/lows).

Pivots mean the signal appears with a delay of pLen candles (this is normal).

Bullish divergence ( ^ marker )

price makes a lower low (LL)

CVD makes a higher low (HL)

➡️ suggests that despite price falling, selling pressure is weakening / accumulation is occurring → potential bounce.

Bearish divergence ( v marker )

price makes a higher high (HH)

CVD makes a lower high (LH)

➡️ suggests that despite price rising, buying pressure is weakening / distribution → potential pullback or drop.

What this is used for

Trend confirmation: whether moves have real volume “fuel”

Early warnings: divergences often appear before price reversals

Entry filters: e.g. only take LONGs when CVD > MA(200), or when after a divergence CVD breaks above MA(21)

Most important limitation

CVD here is an approximation (based on candle direction).
On some instruments / timeframes it works very well, on others less so — therefore it’s best used as a confirmation tool, not a standalone signal.

Personally recommended settings

EMA 8

EMA 34

EMA 50

EMA 200

I do not use divergence markers personally, although that may simply mean I haven’t found the right settings yet.

Simple cheat sheet (remember this)
Price CDV What it means Bias
↑ ↑ real buying LONG
↓ ↓ real selling SHORT
↑ ↓ distribution SHORT soon
↓ ↑ accumulation LONG soon