ECVD by bigmm

This indicator is designed for scalping and short-term trading, ideally used on 1-5 minute timeframes. It helps identify significant momentum shifts by tracking extreme volume imbalances between buying and selling pressure.

How It Works:

• The indicator calculates cumulative volume delta (the difference between buying and selling volumes) on a 1-hour timeframe
  
• It identifies the maximum and minimum delta values over the last 499 bars
  
• When the current delta reaches or exceeds these extreme values (100% of the recent extremes), it draws horizontal lines on the chart
  
• Red "Sell" lines appear when buying pressure reaches extreme levels
  
• Green "Buy" lines appear when selling pressure reaches extreme levels
  

Trading Application:

• On lower timeframes (1-5 min), these extreme readings often signal potential reversal points
  
• The lines act as dynamic support/resistance levels where price may react
  
• The indicator keeps only the 4 most recent lines (2 of each type) to avoid clutter
  
• Traders can use these signals to anticipate short-term price movements and manage risk
  

Best Used For:

• Scalping strategies on very short timeframes
  
• Identifying potential reversal points after strong momentum moves
  
• Confirming entry and exit points in conjunction with other indicators
  
• Understanding when volume extremes might be exhausted
  

This tool works particularly well in combination with price action analysis and other momentum indicators for comprehensive trading decisions.