Hybrid Cumulative Delta

What does this indicator show?
This script displays two types of CVD (Cumulative Volume Delta):

1. Simple Cumulative Delta Volume:
This is the basic method:

pinescript
Kopiraj
Uredi
deltaVolume = volume * (close > close[1] ? 1 : close < close[1] ? -1 : 0)
➡️ It increases cumulative volume if the candle closes higher, and decreases it if it closes lower.

It's a simple assumption:

If the candle is bullish → more buying.

If bearish → more selling.

Then it's accumulated with:

pinescript
Kopiraj
Uredi
cumulativeDeltaVolume = ta.cum(deltaVolume)
It's plotted as candlesticks, rising or falling based on delta volume.

2. Monster Cumulative Delta (advanced method):
Uses a more complex formula, taking into account:

Candle range (high - low),

Relationship between open, close, and wicks,

Distribution of volume inside the candle.

pinescript
Kopiraj
Uredi
U1 = (close >= open ...) ? ...
D1 = (close < open ...) ? ...
Delta = close >= open ? U1 : -D1
cumDelta := nz(cumDelta[1]) + Delta
➡️ Purpose: to more realistically estimate aggressive buyers/sellers.

This is a refined CVD, ideal for markets without real order book data (like forex).

📍 What does the indicator tell us?
➕ If cumulative delta is rising:
Buyers are in control (more aggressive market buys).

➖ If cumulative delta is falling:
Sellers dominate (more aggressive market sells).

📈 How to read it on the chart:
You’ll see 2 candlestick plots:

One for the simple delta (green/red delta volume candles),

One for the monster delta, which is often smoother.

👉 The key is to watch for divergence between price and CVD:

If price goes up but CVD goes down → buyers are weak = potential reversal.

If price drops and CVD rises → selling pressure is weak = potential bounce.

🕐 Best timeframe (interval) for forex?
Timeframe Purpose Recommendation
1m–15m Scalping / short-term flow ✅ Works well, but needs high-volume pairs (e.g., EUR/USD, GBP/USD)
1H–4H Swing trading / intraday ✅ Best balance – reveals smart money movements
1D Macro overview, long-term volume Usable, but less granular info

🔹 Recommendation for forex: 4H interval
Enough volume data to detect shifts in real pressure.

Less noise than lower timeframes.

Great for spotting swing setups (e.g., divergences at support/resistance).