Cumulative Volume Delta Divergence from Estimated Candle Pressure

Summary

This script estimates buying and selling pressure within each candle from its open, high, low, close, and volume. It allocates volume between bullish and bearish pressure, subtracts the latter from the former to calculate delta, and cumulatively sums delta into a volume-delta series. A configurable moving average can be plotted as a reference for that series.

The visible portion also sets up pivot lookbacks, a permitted pivot-distance range, and switches for regular and hidden bullish or bearish divergence plots, indicating that the strategy is intended to use CVD divergence signals. The supplied document cuts off before the divergence conditions, trade entries, exits, or any results are shown, so the precise rules and their behavior cannot be established from the available text. Its pressure values are inferred from candle price ranges rather than shown as directly observed order-flow data. No market, backtest period, or performance evidence is included in the excerpt, so it is best read as a partial description of a CVD-based approach.

Key ideas

• The script estimates bullish and bearish candle pressure by dividing traded volume according to price-range formulas.
• Candle-level delta is the difference between estimated bullish and bearish volume.
• Cumulative delta is compared with a configurable moving average for chart display.
• Pivot and lookback settings indicate an intended search for regular and hidden CVD divergences.
• The excerpt ends before trade rules or results, and its pressure estimates are derived from candle data.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.