CVD Divergence Pro+

🧠Institutional-Grade Smart Money Divergence Engine

Version: 2025.10

Platform: TradingView (Pine Script v5)

Download Free: https://www.tradingview.com/script/KkdXPc68-CVD-Divergence-Pro-Plazo-Sullivan-Roche-Capital/

To acquire the fully autonomous system, email us

⚙️ Core Logic Overview

The CVD Divergence Pro+ is an institutional-grade divergence detector that merges Cumulative Volume Delta (CVD) flow analytics with Smart Money Concepts (SMC) and ICT structure logic.

Instead of plotting noisy histograms, the indicator isolates buy/sell exhaustion points where price action diverges from aggregated buying/selling pressure across multiple data venues.

It integrates:

• CVD-based Divergence Detection

• Multi-Venue UltraData Volume Aggregation

• High Time Frame (HTF) Bias Filters

• ATR Regime Gating

• Session Gating (London/NY)

• VWAP Consensus Gate (D/W/M)

• Cooldown & Phase Confirmation

• Visual Dashboard & VWAP Badge

🔍 Algorithmic Foundation

1. CVD Engine

• Calculates the delta between buying and selling pressure:

  Delta=(V×C−LH−L)−(V×H−CH−L)\text{Delta} = (V \times \frac{C - L}{H - L}) - (V \times \frac{H - C}{H - L})Delta=(V×H−LC−L​)−(V×H−LH−C​)

• This quantifies which side dominates — buyers (positive delta) or sellers (negative delta).

2. Divergence Detection

• The script identifies bullish and bearish divergences between price fractals and the CVD histogram.

• Bullish Divergence: Price makes lower lows while CVD makes higher lows.

• Bearish Divergence: Price makes higher highs while CVD makes lower highs.

• The algorithm uses a dynamic window (n) to detect local pivot highs/lows.

3. Phase Confirmation

• After divergence detection, CVD must sustain a phase shift (positive → negative or vice versa).

• This ensures signals appear only when momentum alignment confirms the move.

4. High Time Frame Bias Filter

• Optionally filters signals based on:

  • H4 EMA200 (for macro trend bias)

  • H4 EMA20 + Daily SMA50 (for shorter-term structural bias)

• Prevents counter-trend trades unless intentionally bypassed.

5. ATR Regime Gating

• Filters low-volatility markets using ATR as % of price.

• Example: ATR < 0.10% = “quiet market,” signals suppressed to prevent chop.

6. Session Gating

• Signals only appear within user-defined sessions (London or New York).

• Ideal for scalpers or intraday traders optimizing liquidity windows.

7. VWAP Consensus Gate

• Anchored VWAPs from Daily, Weekly, and Monthly frames are computed live.

• The system checks how many frames are bullish (2/3 = bullish consensus).

• This creates a market alignment filter for precision timing.

8. Cooldown Mechanism

• Prevents rapid consecutive trades during volatility bursts.

• Each signal starts a cooldown timer (default: 10 bars).

🧩 Feature Set Summary

Category	Feature	Description
Core Engine	CVD Histogram	Computes cumulative buying/selling pressure
	Fractal Divergence	Detects ±RD patterns based on price pivots
Filters	HTF Bias Filter	Confirms higher-timeframe alignment
	ATR Filter	Avoids quiet markets
	VWAP Consensus	Evaluates directional VWAP bias (D/W/M)
	Session Gating	Restricts entries to active windows
	Phase Confirmation	Requires momentum confirmation
	Cooldown	Prevents over-trading
UltraData	Multi-Venue Volume	Aggregates volume from up to 8 global feeds
HUD / Table	VWAP Badge	Live status badge (green, orange, or red)
	Status Table	Bottom-left dashboard summarizing conditions
Visuals	±RD Labels	Marks divergence events
	Buy/Sell Arrows	Plot actual trade entries
	Lines	Visual link between price and divergence

💡 Best Usage Practices

1. Intraday Scalping

• Sessions: Enable London and New York.

• HTF Mode: H4 20 + D50 (faster reaction).

• ATR Filter: Keep ≥ 0.10%.

• VWAP Gate: ON — only take signals aligning with VWAP consensus.

Goal: Trade exhaustion reversals near liquidity zones or imbalance closures.

2. Swing & Position Trading

• Sessions: Disable session gating.

• HTF Mode: H4 200.

• VWAP Gate: ON — filter false counter-trend divergences.

• ATR: Lower filter (0.05%) to catch early shifts.

Goal: Catch institutional shift patterns on Daily → H4 transitions.

3. Multi-Venue Validation (for FX/Commodities)

• UltraData: Enable with multiple brokers (OANDA, FX_IDC, FOREXCOM, etc.).

• Provides aggregated CVD flow that mimics interbank liquidity footprint.

Goal: Reduce venue bias — more accurate delta divergence from real liquidity.

4. Confirmation Layer Setup

Combine with:

• Trend Shift AI or Institutional Raid & Reversion Strategy indicators.

• Use CVD Divergence Pro+ as confirmation — not the trigger.

• When both align (divergence + structure break), expect institutional entries.

🧠 Pro Tips

• Disable ATR Filter during high-impact news (NFP, CPI) for volatility bursts.

• Cooldown: Increase to 20–30 bars for swing systems.

• VWAP Consensus: Use 2/3 bullish for longs, ≤1 bullish for shorts.

• Use on M15–H1 charts for optimal liquidity and signal clarity.

• Avoid using on very low liquidity assets (e.g., micro-caps, exotic pairs).

🧾 Dashboard Guide

Field	Meaning	Interpretation
Protections	ON / BYPASS	Shows filter state
HTF	Current high-timeframe bias	BULL / BEAR / NEUTRAL
ATR%	Market volatility regime	“OK” = safe, “LOW” = avoid
Session	Current active zone	LDN / NY / –
Phase	CVD confirmation status	BullOK / BearOK
VWAP	D/W/M consensus	Shows directional confidence
Cooldown	Trade readiness	Cooling / Ready

⚠️ Risk & Optimization Notes

• Do not overfit filters; use defaults first.

• Backtest across sessions and assets to identify where divergence signals precede large impulse candles.

• Combine with liquidity-based visual cues: FVGs, Order Blocks, or Liquidity Raids for optimal trade confluence.

📈 Example Trade Flow (Ideal Scenario)

1. H4 bias = Bullish

2. Daily/Weekly VWAP > price

3. ATR% OK, Session = London

4. Bullish divergence appears (+RD)

5. CVD Phase = BullOK

6. VWAP consensus ≥ 2

7. Table reads “READY” → Execute

8. Next 5–10 candles show strong bullish impulse (entry validated)

🏁 Conclusion

The CVD Divergence Pro+ is engineered as a quant-grade sentiment synchronizer — fusing price, volume, and time into a single divergence intelligence layer.

When combined with liquidity theory and structure-based execution, it delivers some of the most precise institutional-grade reversal timing available in discretionary or algorithmic trading.