CVD IQ [TradingIQ]

Hello Traders!

🔹CVD IQ [TradingIQ]

CVD IQ is a delta-driven analytical tool designed to reveal how aggressive buying and selling activity translates into price movement.

Instead of relying purely on price, this indicator reconstructs order flow dynamics using lower timeframe data, allowing you to see:

Where did the pressure come from… and how efficiently did it move price?

It focuses on answering a deeper question:
Was the move driven by real participation, or was it inefficient, absorbed, or divergent?

• aggressive buy vs sell activity (CVD)
  
• price vs delta divergences
  
• efficiency of price movement relative to flow
  
• cost of moving price (delta per tick)
  
• absorption and imbalance conditions
  
• multi-scale flow analysis (bar, day, swing)
  
• classic divergence detection (RSI style)
  

🔹What the indicator shows

🔸Cumulative Volume Delta (CVD)

CVD is built using lower timeframe data to approximate aggressive buying and selling.
This allows you to track:

• whether buyers or sellers are in control
  
• how much pressure is building over time
  
• when participation is increasing or fading
  

🔸IMMEDIATE Divergence detection (Classic & Cost Models)

The indicator detects when price and delta are out of sync.
Classic divergence highlights:

• price making new highs while delta weakens
  
• price making new lows while delta strengthens
  
• potential exhaustion or reversal conditions
  

Cost-based divergence goes further by evaluating:

• how much delta was required to move price
  
• whether moves are becoming more or less efficient
  
• hidden weakness in “expensive” price movement
  

This shifts your perspective from:

“price is moving”
to:
“how much effort did it take to move price?”



🔸CVD Cost Per Tick (Efficiency Analysis)

One of the most important features.

The indicator measures:
Delta per tick = how much aggressive volume was required to move price

This allows you to identify:

• efficient moves (low cost → strong response)
  
• inefficient moves (high cost → weak response)
  
• potential exhaustion when cost rises sharply
  

Each swing is classified into categories like:

• Very High Cost
  
• High Cost
  
• Normal Cost
  
• Low Cost
  
• Very Low Cost
  

High cost often signals absorption or resistance from opposing liquidity.

🔸Swing-based flow analysis
The indicator breaks market structure into swings and evaluates:

• delta across each swing
  
• cost of movement between pivots
  
• relative efficiency vs previous swings
  

This helps you understand:

• whether trends are strengthening or weakening
  
• if continuation is becoming harder
  
• when liquidity is likely opposing the move
  

🔸Delta-Implied Close (Expected Price)

The script estimates where price should have closed based on delta.

This gives insight into:

• whether price overperformed or underperformed relative to flow
  
• hidden absorption when price fails to match delta
  
• inefficiencies between participation and result
  

Important Note
This model is adaptive and continuously updates based on changing market conditions. It is not a predictive engine, but rather a framework for interpreting how order flow is currently interacting with price.

🔸Delta Analysis Table (Bar / Day / Swing)
A live table provides a structured breakdown of flow and price response across three contexts:

• current bar
  
• current day
  
• current swing
  

It includes:

• aggressive buy & sell volume
  
• buy/sell percentages
  
• net delta
  
• imbalance ratios
  
• price movement in ticks
  
• close position within range
  
• delta cost per tick
  
• cost classification
  
• absorption detection
  

This allows you to quickly answer:

Who is in control, and is price responding properly?



🔹Table Overview

Metric
Name of the metric shown in each row.
Bar
Value calculated for the current bar only.
Day
Value accumulated from the start of the current day.
Swing
Value accumulated from the start of the current swing.

🔹Flow

Aggressive Buys
Total buy-side market order volume. Higher values indicate stronger buying pressure.
Aggressive Sells
Total sell-side market order volume. Higher values indicate stronger selling pressure.
Buy %
Percentage of total aggressive volume coming from buyers. Higher values indicate buy-side dominance.
Sell %
Percentage of total aggressive volume coming from sellers. Higher values indicate sell-side dominance.
Net Delta
Aggressive buys minus aggressive sells. Positive values favor buyers, negative values favor sellers.
Imbalance Ratio
Relative dominance between buyers and sellers, expressed as a multiple. Higher values indicate stronger directional control.

🔹Price Response

Total Aggression
Combined aggressive buy and sell volume. Represents total market participation.
Bar Tick Move
Price movement measured in ticks. Shows how far price moved over the period.
Close Position
Where price closed within its range. Higher values mean the close is nearer the high, lower values nearer the low.

🔹Efficiency & Cost

Delta Cost / Tick
How much delta was required to move price by one tick. Higher values indicate less efficient movement and potential absorption.
Cost
Classification of how expensive the move is relative to recent conditions. High cost suggests resistance or absorption, low cost suggests efficient movement.
Ticks per 1k Delta
Number of ticks price moved per 1000 delta. Higher values indicate more efficient price movement.
Price Move per 1k Delta
Actual price movement per 1000 delta. Higher values indicate stronger price response to order flow.

🔹Delta-Based Expectations

Delta-Implied Close
The price level where the bar would be expected to close based on the underlying delta.
Move Ratio
Actual price movement relative to the delta-implied move.
1.0 = expected response
1.0 = stronger than expected
<1.0 = weaker than expected

🔹How to read it

Each component provides a different layer:
CVD → who is active
Divergence → when price and flow disagree
Cost → how efficient the move is
Table → structured confirmation across contexts

Together, this shifts your thinking from:

“price moved up”
to:
“buyers were aggressive - but did price actually respond?”

🔹Example interpretations

• strong delta + efficient move → clean continuation
  
• strong delta + weak move → absorption
  
• rising cost over time → trend weakening
  
• divergence signals → potential reversal or trap
  
• low cost + expansion → strong directional move
  

🔹Why this indicator is useful

It gives you:

• participation behind price
  
• context for whether moves are efficient
  
• early detection of exhaustion or absorption
  
• a way to quantify “effort vs result”
  
• multi-timeframe flow insight (bar, day, swing)
  

🔹Best use cases

• confirming trend strength
  
• identifying weak breakouts
  
• spotting absorption at key levels
  
• analyzing liquidity interaction
  
• enhancing price action or liquidity-based models
  

🔹Important note

This script uses lower timeframe data to approximate aggressive volume.
This means:

• accuracy depends on data availability
  
• different symbols may behave differently
  
• lower timeframe selection impacts results
  

🔹Inputs you can customize

• lower timeframe for CVD calculation
  
• divergence models (Classic / Cost / Both)
  
• divergence sensitivity (small, medium, large swings)
  
• cost structure length and thresholds
  
• visual styling and colors
  
• delta analysis table size
  

Closing Notes
CVD IQ is built to show the relationship between participation and outcome.

As always, thank you TradingView!