My CVD

The Cumulative Volume Delta (CVD) is a powerful volume-based indicator that measures the net difference between buying and selling pressure in the market. It calculates the volume attributed to aggressive buyers (when price closes closer to the high) versus aggressive sellers (when price closes closer to the low) within each candle.

CVD provides a running cumulative total of this delta, revealing whether buyers or sellers are in control over time. A rising CVD suggests accumulation by buyers, while a falling CVD indicates distribution by sellers

One of its key strengths is spotting divergences: for example, when price makes a new high but CVD makes a lower high (bearish divergence), it signals weakening buying pressure and potential reversal.Conversely, a new price low with a higher CVD low (bullish divergence) highlights hidden buying strength and possible upside reversal.CVD can be displayed as a periodic reset (sum over a fixed number of bars) or as an EMA-smoothed version for trend clarity.

Traders often use CVD divergences on higher timeframes as high-probability setups, especially when combined with support/resistance or trend changes.

Overall, CVD goes beyond standard volume by showing who is more aggressive at each price level, making it an essential tool for order flow analysis and detecting institutional accumulation/distribution.