**trend for the volume.**This allows you to see if money is flowing in or out of an asset.

What it does is tell you if we have a flashcrash based on the difference in volume.

Think of this indicator like a form of a volatility index.

**Smoothing input:**

The only input is an input for the smoothing length of the logDelta.

**Volume Calculation:**

// @IkkeOmar

//@version=5

indicator('Logarithmic CVD', shorttitle='CVD', overlay=false)

smooth = input.int(defval = 25, title = "Smoothing Distance")

// Calculate buying and selling volume

askVolume = volume * (close > open ? 1 : 0) // Assuming higher close than open indicates buying

bidVolume = volume * (close < open ? 1 : 0) // Assuming lower close than open indicates selling

// Delta is the difference between buying and selling volume

delta = askVolume - bidVolume

// Apply logarithmic transformation to delta

// Adding a check to ensure delta is not zero as log(0) is undefined

logDelta = delta > 0 ? math.log(math.abs(delta)) * math.sign(delta) : - math.log(math.abs(delta)) * math.sign(delta)

// use the the ta lib for calculating the sma of the logDelta

smoothLogDelta = ta.sma(logDelta, smooth)

// Create candlestick plot

`plot(logDelta, color= color.green, title='Logarithmic CVD')`

`plot(smoothLogDelta, color= color.rgb(145, 37, 1), title='Smooth CVD')`

The Delta is simply the difference between buying and selling volumes.

**Logarithmic Transformation:**

`logDelta = delta > 0 ? math.log(math.abs(delta)) * math.sign(delta) : - math.log(math.abs(delta)) * math.sign(delta)`

This script essentially provides a visual representation of the buying and selling pressures in a market, transformed logarithmically for better scaling and smoothed for trend analysis.

Hope it makes sense!

Stay safe everyone!

Don't hesitate to ask any questions if you have any!

Release Notes:

I forgot to add "Logarithmic" to the title. That's the only update lol

Join my community where i share signals and my secret algos:

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t.me/ikkeomarfree

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Just dm my Telegram @IkkeOmar

Telegram:

t.me/ikkeomarfree

I can also help you get $50.000 funded!

Just dm my Telegram @IkkeOmar