Aggregated Volume Delta (CVD) Extremes & Divergence Signals

This indicator identifies potential market turning points and breakout areas by combining aggregated volume, Volume Delta (CVD logic), price extremes, and divergences.

It integrates:

Price extremes (Highest High / Lowest Low)

Above-average volume

Volume Delta direction (buy vs. sell pressure)

Bullish and bearish divergences

Automatic Buy / Sell labels with alerts

⚙️ Critical Calibration Notice (Very Important)

The Lookback Period is the most important parameter in this script.

Default value: 500

This value is not universal

Every asset (crypto, indices, forex, stocks) has different volume behavior and market structure

👉 How to calibrate properly:

Apply the indicator using the default value (500)

Scroll back and review historical signals

Adjust the lookback period incrementally higher or lower

Optimize until:

Signals appear near clear price extremes

Noise and false signals are reduced

Reversals and breakouts are consistently highlighted

➡️ Smaller lookback period

Faster response

More frequent signals

Higher noise

➡️ Larger lookback period

Fewer signals

Stronger structural relevance

Higher signal quality

Always calibrate the lookback period per asset before using the indicator live.

🔧 Volume Difference Ratio Threshold

Recommended value: 1

This setting should remain unchanged

It acts as a structural filter for volume balance vs. dominance

Changing this value typically leads to unstable or misleading signals

📌 Signal Logic (Simplified)

BUY

Price reaches a local low

Volume is above average

Positive or balanced volume delta

SELL

Price reaches a local high

Volume is above average

Negative or balanced volume delta

Divergences

Price makes a new high or low

Volume Delta fails to confirm

Early indication of a potential reversal

🔔 Alerts

Buy Only

Sell Only

Buy & Sell

Designed for manual analysis, trade confirmation, or as a filter within systematic trading setups.