Cumulative Delta on Thinkorswim
The Cumulative Delta pane on Thinkorswim can be useful for volume traders on the platform. The indicator is very good to know the volume-based strength of a trend or reversal when coupled with price action and support resistance.
If you are looking for a Cumulative Delta indicator for use on Thinkorswim there are a few options available to you. Bear in mind that the Thinkorswim platform does not offer true real-time tick data, making it hard to find a Cumulative Delta indicator that suits everyone’s requirements.
Option 1: Thinkorswim CVD (Cumulative Volume Delta) Pane
The CVD (Cumulative Volume Delta) Pane shows the cumulative volume changes. If you are looking for a visible pane on the screen, you’ll never find it. The pane is hidden by default, and you need to click on the V arrow under the ladder.
These are derived from the volume traded by sell aggressors compared to the buy aggressors. The cumulative delta pane presents two line plots across the lower chart and two gauges on the right-hand panel.
Traders can compare the volume figures for buyers and sellers to determine if the dominant pressure is for buying or selling at the time of their trade.
You can read that if you see a lot of reds, short your long positions as aggressive selling is going on. The reverse is true if you see a lot of greens
To configure the CVD Pane, you can visit the Cumulative Volume Delta section on the Thinkorswim Learning Center. The page guides users through the entire process of configuring an active Cumulative Volume Delta tab and gives detailed settings for the default CVD instance.
Users can configure their Order Size Filters settings for the default CVD. They can also set minimum and maximum volume size to be included in CVD calculation. Customization of the indicator to specific session and chart ranges is also described.
The Reference tab allows users to add on multiple reset points. This can be done by clicking on the Add button at the bottom of the window.
The tab offers users the option to specify the time points at which they want the values to reset and the frequency of resets wanted. Once added, all reset points are listed in the Reference points area.
The dropdown arrows allow users to change their reset points through the reference tab after it has been configured.
Option 2: useThinkscript Cumulative Volume Delta Pane
For those that want more details, this useThinkscript page offers a detailed guide for building a Trade Volume Delta Indicator for ThinkorSwim. Most users agree that it is useful on most time frames including tick charts. Please note that the script linked above is meant to be used on a daily chart and not an intra day one.
If you are new to trading cumulative delta the videos on this channel are recommended
This script helps traders to predict the end of a current trend, or the future direction of the next move in a consolidation phase.
The common consensus is that anything rising green over the zero line is a show of strength. If the line is declining but lies above the zero line, the up move is probably going to be over soon. Vice versa applies for anything falling below the zero line in red.
However, most also suggest that the indicator be paired with another indicator to help make better decisions.
The same-day option is the safest as the other variations have users reporting problems and bugs with the script in their executions.
Option 3: TradEdge Coding’s Index Buy/Sell Volume & Cumulative Delta ($49)
The TradEdge Coding Index Buy/Sell Volume and Cumulative Delta Thinkorswim indicator is available for $49.00 at the time of writing and it divides the volume bars into advancing and declining volumes, based on the entire index.
When advancing volume is greater than declining volume, the advancing volume is displayed brighter. When declining volume is higher, it is shown brighter.
This display helps traders ascertain which direction the market is probably going to move into.
This makes it useful for traders to filter out their potential trading direction. The TradEdge indicator shows the difference between rising and falling volumes and sums up that difference all through a trading period.
This helps give its users an indication of the overall trend in the market. The indicator can be modified to show the cumulative delta for the entire session or just the delta for each bar. There are no reviews or feedback about the indicator.
If you have some specific requirements that are not covered by the suggestions in options 1 and 2, and to just save time, a $49 price tag is not too hefty to have. But only if the freebies are not working out for you.
Option 4: Fun with Thinkscript Cumulative Delta Volume ($165)
Another paid TOS indicator with a bigger price tag of $165. The Cumulative Delta Volume gives its users an idea of what buyers and sellers are doing at a specific moment during the trading day. The indicator has a different feature of allowing users to set the chart to start from the previous volume close level or to restart it from 0.
There are no reviews or feedback about the indicator at the moment.