CVD Smart Reversal

CVD Smart Reversal - Indicator Description

═══════════════════════════════════════════════════════════════

🎯 OVERVIEW

Advanced reversal detection system based on Cumulative Volume Delta (CVD) analysis with intelligent quality filtering. Each signal is rated 1-5 stars based on multiple confirmation factors.

═══════════════════════════════════════════════════════════════

🌟 KEY FEATURES

1. Quality Score System (⭐1-5)
• 5 independent criteria evaluate each signal
• Filter weak setups - show only 3+ star signals
• Higher scores = higher probability setups

2. Adaptive Thresholds
• Automatically adjusts to market volatility
• High volatility = stricter criteria
• Works across all market conditions

3. Volume Context Analysis
• Compares current vs historical volume
• Calculates buy/sell pressure (requires >60%)
• Filters reversals with weak volume

4. Multi-Timeframe Confirmation (Optional)
• Validates signals on higher timeframe
• Ensures trading with the trend
• Reduces counter-trend entries

5. Smart Signal Management
• Minimum 5-bar spacing between signals
• Automatic label cleanup (max 20)
• Clean chart, no clutter

═══════════════════════════════════════════════════════════════

📊 HOW IT WORKS

CVD Calculation:
Custom volume delta calculation using intrabar polarity estimation.

Signal Detection:
Combines CVD reversal, candlestick patterns (Hammer, Shooting Star, Engulfing, Pin Bar), and divergence analysis.

Quality Scoring:
Each signal scores 0-5 points based on:
• CVD strength (statistical deviation)
• Pattern quality (professional recognition)
• Divergence presence
• Volume context (ratio + pressure)
• Trend confirmation (MTF or acceleration)

═══════════════════════════════════════════════════════════════

🎮 USAGE MODES

Sniper Mode (High Quality):
• Min Score: 4-5 stars
• MTF: ON
• Result: 2-5 signals/day, highest win-rate

Active Mode (Balanced):
• Min Score: 3 stars
• MTF: OFF
• Result: 5-15 signals/day, good balance

Scalping Mode (High Frequency):
• Min Score: 2 stars
• Divergence: Weak
• Result: Many signals, fast execution needed

═══════════════════════════════════════════════════════════════

💡 BEST PRACTICES

• Use on liquid markets with reliable volume data
• Combine with key support/resistance levels
• Pay attention to quality scores - 4-5★ have significantly higher success
• Enable MTF confirmation for intraday trading
• Use stricter settings during high-impact news events

═══════════════════════════════════════════════════════════════

⚙️ DEFAULT SETTINGS

• Quality Filter: ON
• Minimum Score: 3 stars
• MTF Confirmation: OFF
• Volume Analysis: ON
• Divergence Strength: Medium

These settings provide 5-15 quality signals per day on active instruments.

═══════════════════════════════════════════════════════════════

🔔 ALERTS

Four alert types available:
• Strong Bullish Reversal (4-5★ only)
• Strong Bearish Reversal (4-5★ only)
• Regular Bullish Reversal (all qualified)
• Regular Bearish Reversal (all qualified)

═══════════════════════════════════════════════════════════════

⚠️ LIMITATIONS

• Requires volume data (not suitable for markets without volume)
• MTF confirmation adds lag by design
• Lower timeframes may need adjusted settings
• Quality filter reduces signal frequency by design

═══════════════════════════════════════════════════════════════

🎯 ORIGINALITY

This indicator combines multiple unique elements:
• Multi-factor quality scoring (not found in other CVD tools)
• Adaptive volatility-based thresholds
• Volume pressure calculation with directional filter
• Integrated MTF confirmation within scoring system
• Smart label management with automatic cleanup

The quality scoring system transforms CVD analysis from binary signals into a ranked opportunity system, allowing traders to prioritize setups based on confluence strength.

═══════════════════════════════════════════════════════════════

📈 DISPLAY ELEMENTS

• Background highlighting on signal bars
• Triangle markers at entry points
• Labels showing CVD, Delta, Divergence, Quality Score, Volume flag
• Real-time info panel with CVD metrics
• Clean visual presentation

═══════════════════════════════════════════════════════════════

✅ SUITABLE FOR

• Crypto (BTC, ETH, etc.)
• Stocks (AAPL, TSLA, SPY, etc.)
• Futures (ES, NQ, CL, etc.)
• Forex (brokers with volume data)
• All timeframes (1m to 1D)

═══════════════════════════════════════════════════════════════