CVD Momentum Divergence

1. Introduction

Discover hidden buying/selling pressure before price explodes! The CVD Momentum Divergence indicator compares detrended and normalized price momentum (orange line) against Cumulative Volume Delta momentum (blue line) to reveal when volume flow diverges from price action. These two lines oscillate around zero on the same scale, making hidden strength/weakness crystal clear during market sessions.

2. Key Features

- Dual Detrended Lines: Price momentum (orange) vs CVD momentum (blue) - both normalized [-2/+2 scale]
- CVD-Price Divergence Histogram: Green bars above zero when blue (CVD stronger); Red bars below when orange (CVD weaker)
- Trend-Free Analysis: SMA detrending removes directional bias for pure cycle comparison
- Universal CVD Calculation: Works on any volume symbol
- Fully Customizable: Separate price/CVD lengths + smoothing control

3. How to use

Look for divergences between main chart price movement and the separation (distance) between blue/orange lines - the histogram quantifies this perfectly.

- Large GREEN histogram (above zero) = CVD strength >> price movement = buying delta dominates
- Large RED histogram (below zero) = Price strength >> CVD = selling delta dominates
- Both lines above zero = overall buying momentum. Both below zero = selling momentum
- Price falling BUT blue line stays high → hidden buying → upside likely
- Price rising BUT blue lags → selling pressure building → downside risk

NOTE: This indicator shows momentum divergence only! Always confirm with price action (support/resistance, candle patterns, key levels).