OPEN-SOURCE SCRIPT
CVD Absorption + Confirmation [Orderflow & Volume]

This indicator detects bullish and bearish absorption setups by combining Cumulative Volume Delta (CVD) with price action, candlestick, and volume confirmations.
🔹 What is Absorption?
Absorption happens when aggressive buyers/sellers push CVD to new highs or lows, but price fails to follow through.
This often signals that limit orders are absorbing aggressive market orders, creating potential reversal points.
🔹 Confirmation Patterns
Absorption signals are only shown if they are validated by one of the following patterns:
🔹 Signals
✅ Bullish absorption confirmed → Green label below the bar.
❌ Bearish absorption confirmed → Red label above the bar.
Each label represents a potential reversal setup after orderflow absorption is validated.
🔹Alerts
Built-in alerts are included for both bullish and bearish confirmations, so you can track setups in real-time without watching the chart 24/7.
📌 How to Use:
🔹 What is Absorption?
Absorption happens when aggressive buyers/sellers push CVD to new highs or lows, but price fails to follow through.
- Bearish absorption: CVD makes a higher high, but price does not.
- Bullish absorption: CVD makes a lower low, but price does not.
This often signals that limit orders are absorbing aggressive market orders, creating potential reversal points.
🔹 Confirmation Patterns
Absorption signals are only shown if they are validated by one of the following patterns:
- Engulfing candle with low volume → reversal faces little resistance.
- Engulfing candle with high volume → strong aggressive participation.
- Pin bar with high volume → absorption visible in the wick.
- CVD flattening / slope reversal → shift in aggressive order flow.
🔹 Signals
✅ Bullish absorption confirmed → Green label below the bar.
❌ Bearish absorption confirmed → Red label above the bar.
Each label represents a potential reversal setup after orderflow absorption is validated.
🔹Alerts
Built-in alerts are included for both bullish and bearish confirmations, so you can track setups in real-time without watching the chart 24/7.
📌 How to Use:
- Best applied at key levels (supply/demand, VWAP, OR, liquidity zones).
- Look for confluence with your trading strategy before taking entries.
- Works on all markets and timeframes where volume is reliable.
Script de código abierto
Siguiendo fielmente el espíritu de TradingView, el creador de este script lo ha publicado en código abierto, permitiendo que otros traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Puede utilizarlo de forma gratuita, pero tenga en cuenta que la publicación de este código está sujeta a nuestras Normas internas.
Exención de responsabilidad
La información y las publicaciones que ofrecemos, no implican ni constituyen un asesoramiento financiero, ni de inversión, trading o cualquier otro tipo de consejo o recomendación emitida o respaldada por TradingView. Puede obtener información adicional en las Condiciones de uso.
Script de código abierto
Siguiendo fielmente el espíritu de TradingView, el creador de este script lo ha publicado en código abierto, permitiendo que otros traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Puede utilizarlo de forma gratuita, pero tenga en cuenta que la publicación de este código está sujeta a nuestras Normas internas.
Exención de responsabilidad
La información y las publicaciones que ofrecemos, no implican ni constituyen un asesoramiento financiero, ni de inversión, trading o cualquier otro tipo de consejo o recomendación emitida o respaldada por TradingView. Puede obtener información adicional en las Condiciones de uso.