CumulativeVolumeDeltaHistogram

CumulativeVolumeDeltaHistogram

1. Introduction

This document explains how to use the CVD (Cumulative Volume Delta) + Delta Volume Histogram indicator. It covers setup, features, trading logic, and best practices.

2. What the Indicator Shows

- Delta Histogram: Displays per‑bar delta (buy volume – sell volume) as green/red bars.

- Helps identify market pressure, absorption, reversal signals, and trend strength.

3. How to Add Indicator in MT5

1. Open MT5.

2. Go to File → Open Data Folder.

3. Navigate to MQL5 → Indicators.

4. Paste the .mq5 source file.

5. Restart MT5.

6. Attach indicator from Navigator → Indicators.

4. Inputs & Settings

- CumulativePeriod : 20

- Positive Delta Color: Green.

- Negative Delta Color: Red.

- Line Width, Smoothing, Scaling options, etc.

5. How to Read CVD & Delta

• Rising CVD → Buyers stronger.

• Falling CVD → Sellers stronger.

• Divergence between Price & CVD → Possible reversal.

• Large Delta spikes → Aggressive buying/selling.

6. Trading Examples

- Bullish Divergence: Price making lower low while CVD makes higher low → Buy setup.

- Bearish Divergence: Price making higher high while CVD makes lower high → Sell setup.

- Trend Confirmation: CVD moving in same direction as trend strengthens breakout.

7. Best Practices

• Use with Market Structure.

• Add volume profile or VWAP for confluence.

• Avoid low‑liquidity times.

• Always confirm signals with price action.

8. Disclaimer

This indicator does not guarantee profits. Use proper risk management.