This Single Volume Delta (SVD), respectively Cumulative Volume Delta (CVD) is a really simple script computing the difference of the volume of the actual in comparison the the volume of the "Calculation Bars Threshold", calculated by smoothing through a simple moving average - the "CVD MA Smoothing".
Therefore, if the "Calculation Bars Threshold" and the "CVD MA Smoothing" are set to 1, the script will display the difference of the actual compared to the previous candle; furthermore, if the "Calculation Bars Threshold" is set to 3 and the "CVD MA Smoothing" is set to 14, then the indicator will display the the summed difference of the past 3 values, smoothed over a period of 14 candles.
This indicator may also be set to a different time frame, allowing multi time frame analysis; f.e. if you're going to set a lower time frame than the actual, the deltas of the lower time frame will be displayed and will be showing the volume trend of the lower time frame; if you're going to set a higher time frame, this is respectively working as described.
To understand volume and price action, it is - imho - especially helpful to display the volume of higher time frames to visualize the "Where the heck am I and what are the big players doing?"
This indicator is coloring the histogram in green as positive, red as negative and gray as indecisive CVD.
Hopefully, this will be helpful in your VSA and your trading decisions.
Cheers, Constantine
p.s.: I am also working on a far more sophisticated version of SVD/CVD, so stay tuned!
Versionsinformation
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Fixed color plotting
Versionsinformation
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Due to request I've updated the lookahead which shall resolve the repainting issue.
Great indicators but i noticed that the indicator repaint when you set calculated timeframe to 1D and use 2 hours timeframe to trade.
constantine_trading
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@OxSonta, Yes thats true. Unfortunately, I'm not sure how to solve this bc the problem is that if you're calculating one timeframe against another, either one of them will always be "unfinished". Just to make this more evident: If in your example 1D is calculated against 2H, then even when the 2H are completed, the day might still be running.
UnknownUnicorn14014217
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Hello Constantine,
Many thanks for the useful indicator. I join the requests of the other people in getting access to the code, if possible. TIA.
Aaron6611
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Hey,
Thanks for the script!
Would you consider opening the script so we can see the code?
Thanks!
ebecerra85
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This newbie thanks you.
TheHurst
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Hi Constantine,
I have found my way here from your how to read volume tutorial. Really wonderful much appreciated by a newbie like me. I am struggling however to make sense of this C.O.N.G-MA-CVD. In the sense of how do you actually use it to trade? Are the valleys indicators of entry and exit? Or is it when it breaks the zero line? Or is it more of a trend indicator to back up other information used for trades? Please forgive my ignorance I am relatively new to this. I look forward to the book i am sure it will be very useful to me.
Regards Theo
constantine_trading
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@TheHurst, these are just a few examples, maybe you want to try for yourself and pm me with your results?
TheHurst
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@constantine_trading, This is wonderful, thank you for the help. I will do that. I mainly do shorts now based on divergence between RSI and price worked out well so far but I am just starting out so could be beginners luck. This will be another thing to look out for to make my trades more safe. Thank you again.