CUMULATIVE DELTA WAVES Trading Guide

The Cumulative Delta Waves (CVD Waves) indicator reconstructs order flow by analyzing the microscopic buying and selling pressure inside every candle. It accumulates these volume deltas and detrends them against a zero-line, revealing the true underlying momentum of the market.

What does the indicator show?

• CVD Histogram Waves: A stylized, oscillating histogram. Dark/light green waves represent accelerating or decelerating buying pressure, while dark/light red waves represent selling pressure.
• Zero-Line Baseline: The dynamic equilibrium point. Waves expanding away from this line show trend strength.
• Automated Divergences: Explicit dashed lines stretching across the histogram to highlight when price action disagrees with the volume flow, accompanied by "BULL" or "BEAR" text alerts.

Key Settings

• Baseline EMA Length: Determines how aggressively the raw order flow is detrended back to the zero line. Faster values create choppier waves; slower values show macro volume trends.
• Pivot Left / Right: The structural anchor points used by the divergence engine. A (10, 5) setting means a peak is confirmed if it's the highest point 10 bars back and 5 bars forward.

How to use Strategy Parameters (Condition Source)

Within the Strategy Tester module, you can leverage the internal calculations of the CVD waves to build robust, volume-backed execution logic.

1. Volume Trend & Divergences

You can trade the raw momentum shifts or wait for explicit volume divergence anomalies.

• CVD Wave — The raw numerical value of the current volume wave (above or below zero).
• Crosses Zero Up / Down — Boolean triggers that fire exactly when the aggregate volume delta flips from sellers to buyers, or vice versa.
• Bullish / Bearish Divergence — A highly accurate boolean trigger that fires when the divergence engine confirms a structural mismatch between price and CVD.

Strategy Example: To catch a reversal, you might execute a Long order when Bullish Divergence is_true AND the CVD Wave crosses_above 0.