PROTECTED SOURCE SCRIPT
NIFTY_2MIN_CVD_short_Strategy
Summary
This strategy is an intraday system designed for the Nifty index on a 2-minute timeframe, focusing exclusively on identifying high-probability short (sell) entries. It utilizes a combination of rapid price action and Cumulative Volume Delta (CVD) to detect "Buying Absorption" at local peaks.
Concept & Core Logic
The strategy is engineered to identify "Inverted V-shaped" reversals where aggressive buying pressure is exhausted and absorbed by large-scale limit orders from sellers.
Price Action Trigger: The strategy looks for a specific two-part sequence:
Sudden Bullish Movement: A rapid upward move that often traps late buyers or triggers short-covering.
Sudden Reversal: Immediately followed by a strong, high-momentum bearish (red) candle, signaling a swift rejection of the higher prices.
CVD Absorption Filter: To confirm the validity of the reversal, the strategy analyzes the Cumulative Volume Delta (CVD). It identifies instances where the relative movement of the CVD is significantly higher than the corresponding price movement. This specific divergence highlights "Buying Absorption"—a market condition where aggressive market buy orders are being filled by passive limit sell orders, preventing further price appreciation and creating a heavy ceiling for the reversal.
Risk Management
To maintain a disciplined approach, the strategy employs fixed exit parameters based on the underlying Nifty price:
Take Profit: 25 points.
Stop Loss: 30 points.
Intended Use
This tool is intended for traders who study mechanical, rule-based systems and order flow dynamics. It provides a structured framework for observing how volume delta divergence (CVD) and rapid price rejections interact at potential market turning points.
Disclaimer: This script is for educational and informational purposes only. It is not financial advice. All trading involves risk, and past performance is not indicative of future results. Please conduct your own research and backtesting before making any trading decisions.
This strategy is an intraday system designed for the Nifty index on a 2-minute timeframe, focusing exclusively on identifying high-probability short (sell) entries. It utilizes a combination of rapid price action and Cumulative Volume Delta (CVD) to detect "Buying Absorption" at local peaks.
Concept & Core Logic
The strategy is engineered to identify "Inverted V-shaped" reversals where aggressive buying pressure is exhausted and absorbed by large-scale limit orders from sellers.
Price Action Trigger: The strategy looks for a specific two-part sequence:
Sudden Bullish Movement: A rapid upward move that often traps late buyers or triggers short-covering.
Sudden Reversal: Immediately followed by a strong, high-momentum bearish (red) candle, signaling a swift rejection of the higher prices.
CVD Absorption Filter: To confirm the validity of the reversal, the strategy analyzes the Cumulative Volume Delta (CVD). It identifies instances where the relative movement of the CVD is significantly higher than the corresponding price movement. This specific divergence highlights "Buying Absorption"—a market condition where aggressive market buy orders are being filled by passive limit sell orders, preventing further price appreciation and creating a heavy ceiling for the reversal.
Risk Management
To maintain a disciplined approach, the strategy employs fixed exit parameters based on the underlying Nifty price:
Take Profit: 25 points.
Stop Loss: 30 points.
Intended Use
This tool is intended for traders who study mechanical, rule-based systems and order flow dynamics. It provides a structured framework for observing how volume delta divergence (CVD) and rapid price rejections interact at potential market turning points.
Disclaimer: This script is for educational and informational purposes only. It is not financial advice. All trading involves risk, and past performance is not indicative of future results. Please conduct your own research and backtesting before making any trading decisions.
보호된 스크립트입니다
이 스크립트는 비공개 소스로 게시됩니다. 하지만 이를 자유롭게 제한 없이 사용할 수 있습니다 – 자세한 내용은 여기에서 확인하세요.
면책사항
해당 정보와 게시물은 금융, 투자, 트레이딩 또는 기타 유형의 조언이나 권장 사항으로 간주되지 않으며, 트레이딩뷰에서 제공하거나 보증하는 것이 아닙니다. 자세한 내용은 이용 약관을 참조하세요.
보호된 스크립트입니다
이 스크립트는 비공개 소스로 게시됩니다. 하지만 이를 자유롭게 제한 없이 사용할 수 있습니다 – 자세한 내용은 여기에서 확인하세요.
면책사항
해당 정보와 게시물은 금융, 투자, 트레이딩 또는 기타 유형의 조언이나 권장 사항으로 간주되지 않으며, 트레이딩뷰에서 제공하거나 보증하는 것이 아닙니다. 자세한 내용은 이용 약관을 참조하세요.