Cvd Divergence Signals with filter.

https://www.tradingview.com/x/IgceioDB/

CVD Divergence + Candles - False Signal Filter

Hey traders,
I want to share my custom indicator with you. Through testing, I've found that CVD (Composite Volume Delta) captures divergences much more accurately than traditional tools like RSI. But this isn't just another divergence indicator - I've added strict candlestick pattern confirmation to filter out false signals. I'll keep improving this tool over time, and I welcome all your suggestions in the comments.

How it works step-by-step:
1. First, it detects CVD divergences (the delta between buy/sell volumes)
2. Then confirms each signal with reversal candlestick patterns:
- Hammer/Hanging Man
- Engulfing
- Pin Bar
- Inside Bar

Why mine beats standard CVD indicators:
• No raw divergences - only shows signals confirmed by BOTH volume AND price action
• Eliminates 80% of junk signals from basic versions
• Adaptable to any asset and timeframe

Simple usage guide:
Green arrows = Buy when:
- CVD shows bullish divergence
- AND a hammer/pin bar appears
Red arrows = Sell when:
- CVD shows bearish divergence
- Confirmed by hanging man/engulfing pattern

Pro tip:
For best results, combine with:
• Volume profile analysis
• Smart Money concepts (order blocks, FVGs )

Important notes:
This isn't a holy grail - I personally use it with support/resistance levels. Works best on 5M charts for scalping.

**PS** Got questions? Drop them in comments!