CVD Flow Labels for Sessions Ranges [AMT Edition]

31. Dez. 2025

CVD Flow Labels for Session Ranges [AMT Edition]
Description:
This script provides a session-aware Cumulative Volume Delta (CVD) analysis designed to enhance the “Session Ranges [AMT Edition]” framework by combining price extremes with detailed volume flow dynamics. Unlike generic trend or scalping indicators, this tool focuses on identifying aggressive buying and selling pressure, distinguishing between absorption (failed auctions where aggressive flows are rejected) and acceptance (confirmed continuation of flows).
How it works:
CVD Calculation: The script calculates delta for each bar using a choice of Total, Periodic, or EMA-based cumulative methods. Delta represents the net difference between estimated buying and selling volume per bar.
Normalization: By normalizing delta relative to recent volatility, it highlights extreme flows that are statistically significant, making large shifts in market sentiment easier to spot.
Session-Specific Analysis: The indicator separates Asia, London, and New York sessions to allow context-sensitive interpretation of price and volume interactions. Each session’s extremes are monitored, and flow labels are plotted relative to these extremes.
Flow Labels: Bullish and bearish absorption (“ABS”) and acceptance (“ACC WEAK/STRONG”) labels provide immediate visual cues about whether aggressive flows are being absorbed or accepted at key price levels.
Alerts: Configurable alerts trigger when absorption or acceptance occurs, supporting active trading or strategy automation.
Originality & Usefulness:
This script is original because it integrates volume-based auction theory with session-specific market structure, rather than simply showing trend or scalping signals. By combining CVD dynamics with session extreme levels from the “Session Ranges [AMT Edition]” script, traders can:
Identify where price is likely to be accepted or rejected.
Confirm aggressive buying or selling flows before entering trades.
Time entries near session extremes with higher probability setups.
How to use:
Apply the “Session Ranges [AMT Edition]” to see session highs, lows, and interaction lines.
Use this CVD Flow Labels script to visualize absorption and acceptance at these session levels.
Enter trades based on alignment of session extremes and flow signals:
Absorption at a session extreme may indicate a potential reversal.
Acceptance suggests continuation in the direction of the flow.
Alerts can help manage trades without constant screen monitoring.
This tool is designed to give traders a structured, session-based view of market auctions, providing actionable insights that go beyond typical trend-following or scalping methods. It emphasizes flow analysis and statistical extremes, enabling traders to make more informed decisions grounded in market microstructure.

1. Jan.

Versionshinweise

🧠 How to Trade the ABS (Absorption) Bar & Zone
What the ABS Bar Represents
An ABS (Absorption) bar appears when aggressive buying or selling is absorbed without price continuation:
Bullish ABS: Strong buy delta, but price fails to close above the prior high
Bearish ABS: Strong sell delta, but price fails to close below the prior low
This behavior signals passive participants absorbing aggressive orders, often near a session high/low or a key interaction level.
The ABS Zone (Absorption Area)
When an ABS bar prints:
The entire high-to-low range of the absorption candle defines the ABS zone
This full candle range represents the area where absorption occurred
A horizontal line is drawn at the defended edge of the candle:
Bullish ABS → line at the low
Bearish ABS → line at the high
The line extends across three candles to visually anchor the zone in time
The zone = candle range
The line = decision boundary
This is not an entry level — it is a decision level.
📋 Trade Rules – Step by Step
✅ 1. Identify Absorption
Wait for an ABS label
Recognize the ABS zone as the full candle high → low
Note which side of the candle is being defended
✅ 2. Directional Expectation
Price should move away from the ABS zone, not deeper into it.
The correct trade direction is opposite the defended edge:
ABS Type Defended Edge (Line) Expected Response
Bullish ABS Candle low Price moves upward
Bearish ABS Candle high Price moves downward
If price rotates back through the ABS zone, the idea is invalid.
❌ 3. No Trade If
Price accepts through the full ABS candle range
Price stalls and compresses inside the zone
A new opposite-side absorption appears
✅ 4. Confirmation (Preferred)
Higher-quality trades occur when price:
Breaks structure away from the ABS zone
Closes decisively outside the candle range
Prints Acceptance (ACC WEAK or ACC STRONG) in the expected direction
Absorption shows intent — confirmation shows resolution.
🎯 5. Execution Logic
ACC WEAK → Probe / reduced size
ACC STRONG → Trade-eligible / full execution
Stops should be placed beyond the ABS candle range, since acceptance back through the zone invalidates the premise.
📌 Conceptual Summary
This tool is designed to:
Reveal where auctions failed
Define absorption zones using real price extremes
Highlight defended edges
Require price confirmation before participation
Absorption alone does not predict direction.
Only price moving away from the ABS zone confirms control.

2. Jan.

Versionshinweise

Update Labels made shorter : Acceptance strong now shows ACC STR, Acceptance weak now shows ACC WK. To cut down on clutter.

5. Jan.

Versionshinweise

cvd background has been removed

vor 4 Tagen

Versionshinweise

🔄 Update: Successful Auction (BULL S / BEAR S) Logic Explained
This update clarifies how BULL S and BEAR S signals are generated and how they relate to ABS (Absorption) levels.

🟠 Absorption (ABS)
An ABS label marks a candle where strong aggressive delta is absorbed and price fails to continue in that direction.
Bullish ABS
Strong buying delta
Price does not break the prior high
ABS level is anchored at the candle low
Bearish ABS
Strong selling delta
Price does not break the prior low
ABS level is anchored at the candle high
The ABS candle represents a defended auction level, not acceptance.

🟢 BULL S (Bullish Successful Auction)
A BULL S label prints when:
A bullish ABS is active, and
Price closes above the ABS candle’s HIGH
This confirms that the market has successfully auctioned upward through previously absorbed liquidity.

📌 Important:
The signal is triggered by a price close, not by visually crossing the ABS label or line.
BULL S may occur several bars after the original ABS candle.

🔴 BEAR S (Bearish Successful Auction)
A BEAR S label prints when:
A bearish ABS is active, and
Price closes below the ABS candle’s LOW
This confirms that the market has successfully auctioned downward through previously absorbed liquidity.

🧠 Key Concept
ABS = Defense / Pause
BULL S / BEAR S = Resolution
These signals confirm auction completion, not prediction.

⚠️ Notes
Only one successful auction can occur per ABS event.
Once BULL S or BEAR S triggers, the absorption state resets.
Signals are based on price structure, not label position.

vor 3 Tagen

Versionshinweise

📌 What's new and why, to help add clarity to how the auction is supposed to flow so I felt that this was necessary to add absolute clarity..

📌 High-Probability Execution Logic (Alert-Based)
This system prioritizes auction resolution after proven absorption, filtered by All-in-One CVD alignment.
Primary Actionable Setups
(2) Acceptance After Absorption
Triggers when price shows acceptance immediately following an absorption event
Indicates early initiative from the defending side
Best suited for earlier entries with tighter risk
Must align with All-in-One CVD directional bias to be valid
(3) Bull S / Bear S After Absorption
Triggers when a bullish or bearish structure break occurs after absorption
Confirms full auction resolution beyond the defended level
Higher confidence but later entry than Acceptance
Requires All-in-One CVD alignment for execution

📊 System Hierarchy
All-in-One CVD → Directional bias filter
Absorption → Structural anchor
Acceptance or Bull/Bear S → Execution trigger
Alerts fire only when structure and flow are aligned, helping reduce low-quality momentum trades and focus on resolved auction behavior.


📊 Optional Confirmation: CVD Flow Dashboard
The CVD Flow Dashboard can be used as an additional confirmation layer to:
Monitor acceptance, sequence, and flow continuity
Identify stalling vs. expansion during setup development
Add confidence when dashboard conditions support the ABS-based setup
The dashboard is contextual, not required for execution.
Final trade decisions should always prioritize Absorption + Execution Signal + All-in-One CVD alignment.