Smart CVD Exit Alert (Daily, Light Threshold)

Smart Capital Exit Strategy Using Daily CVD (Smoothed)

🧠 Concept:
This strategy focuses on identifying significant capital outflows from an asset by analyzing smoothed Cumulative Volume Delta (CVD) data on the daily timeframe. The goal is not to catch every top, but to spot major distribution phases — when large players are quietly exiting positions.

🔍 Logic:
We calculate the daily CVD by comparing up-volume (on bullish candles) and down-volume (on bearish candles), then smooth the result using a simple moving average. A sell signal is triggered only when:

The smoothed CVD drops below a user-defined threshold (default: -100,000)

The day-over-day drop in CVD exceeds a defined amount (default: -50,000)

This dual condition helps reduce noise and avoids false signals during sideways or low-volume conditions.

🕒 Timeframes:
This script is designed to be used on the Daily (1D) chart, as it aggregates volume data per day to assess macro-level capital flow. You can customize the thresholds based on the asset's average volume.

⚙️ Settings:
CVD Threshold: Minimum CVD value required to consider it a strong outflow

Drop in CVD Threshold: Minimum change in smoothed CVD from the previous day

Smoothing Length: Length of the moving average applied to the CVD values

📍 Use Case:
Use this script as a profit-taking filter — not a blind exit trigger. It helps you step away from positions when real, meaningful selling starts to appear.

📌 Visuals:
Red “Sell” labels will appear at the top of candles when both exit conditions are met. You’ll also see a blue smoothed CVD line plotted below your chart for reference.

🔔 Alerts:
An alert is built-in and fires whenever an exit signal is triggered, letting you react instantly.

📜Please remember to do your own research before making any investment decisions. Also, don’t forget to check the disclaimer at the bottom of each post for more details.

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