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ECVD by bigmm

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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.

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