Comments for https://ctrader.com/products/2363

Here is the breakdown of the core signal logic:

1. Volume (The Foundation) 📊
   This is the primary engine of the indicator. Unlike standard indicators that use time-based closing prices (like moving averages), DMD analyzes Volume-at-Price.

Logic: It distributes tick volume across vertical price "bins" (rows) to visualize where trading activity is actually happening, regardless of time.

Signal: It identifies Liquidity Concentrations:

High Volume Nodes (HVN): Areas of "Acceptance" or fair value where heavy trading occurs (Consolidation).

Low Volume Nodes (LVN): Areas of "Rejection" or thin liquidity where price moves quickly (Imbalance).

1. Momentum / Sentiment (The "Mood") 🐂🐻
   The "Deep Mood" aspect introduces a Delta/Order Flow logic.

Logic: It calculates the "Dominance" at each price level using the formula: Sentiment = 2 * BullishVolume - TotalVolume.

Signal: It tells you who controlled a specific price level.

Teal/Green Bars: Buyers were aggressive (Bullish Momentum).

Red Bars: Sellers were aggressive (Bearish Momentum).

1. Mean-Reversion (The Context) 🧲
   The indicator uses the volume structure to define Fair Value anchors.

Logic: The description explicitly highlights the POC (Point of Control) and HVNs as "fair price" anchors.

Signal:

Price tends to revert to High Volume Nodes (Gravity/Value).

Price tends to break away or reject from Low Volume Nodes (Support/Resistance zones).

1. Pattern (The Structure) 🧩
   By segmenting the chart into Fixed Blocks (e.g., last 100 bars), it creates a "Rhythm" or Pattern of Liquidity.

Logic: Instead of one giant profile, it allows you to compare "Session A vs. Session B".

Signal: You can visually detect shifts in value (e.g., is the POC moving up or down between blocks?).
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