Z-Score Volume with CVD Confirmation

Z-Score Volume with CVD Confirmation is a volume-based confluence tool that enhances traditional volume analysis by combining Z-Score volume anomalies with Cumulative Volume Delta (CVD) confirmation. This indicator helps traders identify unusual volume activity that aligns with directional order flow, offering a cleaner signal for potential breakout or reversal scenarios.

🔍 Key Features:
Z-Score Calculation: Measures how extreme current volume is relative to its recent average, highlighting statistically significant surges or drops.

CVD Confirmation: Uses Cumulative Volume Delta candles (open/high/low/close) to assess buying vs. selling pressure in lower timeframes.

Bar Color Logic:

Green: High Z-Score volume confirmed by CVD bullish candle

Red: High Z-Score volume confirmed by CVD bearish candle

Other color bands show progressively strong or weak volume outliers

Real Volume Bar Heights: Volume bars retain true scale while color reflects underlying order flow strength and direction.

💡 Use Cases:
Breakout validation: Confirm price range breaks when volume surge is supported by CVD direction

Fade setups: Detect unsustainable high-volume moves lacking CVD support

Trend continuation: Spot momentum when both Z-Score and CVD align in the direction of the trend

⚙️ How to Use:
Adjust the Z-Score length to define how far back to measure average and deviation.

Select your anchor timeframe (typically 1D) and a lower timeframe for CVD calculations (e.g., 1-minute).

Use color-coded volume bars to assess volume significance and directional flow at a glance.

Add the standard volume indicator to the chart so one can compare the difference between the standard volume indicator and the Z-Score Volume with CVD Confirmation script. Useful at specific price levels and exiting ranges or not.