📈 CVD – The counter of buyers and sellers
Imagine a match between two teams.
On the one hand, buyers are pushing the price up. On the other hand, sellers are trying to push it down. THECVD, OrCumulative Volume Delta, works like a counter which progressively adds up the points scored by each side. It doesn’t just look at whether the price goes up or down. He seeks to knowwho really acts with the most force.
🎯 What is it for?
The CVD allows you to visualize the difference between aggressive buying and aggressive selling.
- 🟢CVD increasing: aggressive buyers dominate.
- 🔴CVD decreasing: Aggressive sellers take control.
An aggressive buyer is simply someone who wants to buy right away, without waiting for a better price.
An aggressive seller does the opposite: he sells immediately, even if it pushes the price lower. This is why CVD is very useful for understanding thebuyer/seller pressure.
🧠 How to interpret it?
🟢 CVD which rises with the price
When the price rises and the CVD also rises:
- Buyers are really following the movement.
- The increase seems better sustained.
- Fallbacks can be more easily defended.
🔴 CVD which drops with the price
When the price falls and the CVD also falls:
- Sellers dominate exchanges.
- The bearish pressure is clearer.
- Rebounds may lack force.
⚠️ Divergences
The CVD becomes particularly interesting when it doesn’t tell the same story as the price.
Example :
- The price goes up.
- The CVD no longer rises or begins to fall.
- ➜ The rise can be fragile, because buyers are no longer really confirming.
Conversely:
- The price goes down.
- The CVD no longer drops.
- ➜ Sellers may start to lose strength.
⚠️ What you should never do
CVD should not be used alone.
A rising CVD does not automatically mean that you should buy. A falling CVD does not automatically mean that you have to sell. You should always look at where the price is: on support, below resistance, in a clear trend or in a trap zone.
🤝 What to combine it with?
💧 Money Flow
THEMoney Flowshows whether capital fuels the market.
The CVD shows who is actually pushing in the present moment. When both go in the same direction, the reading becomes more solid.
🌋 Buyer/seller pressure
The CVD is one of the best tools to confirm whether buyers or sellers actually dominate. It helps avoid relying solely on the color of a candle.
⚡ Liquidations
A strong variation in CVD near a liquidation zone can announce a rapid movement. If buyers or sellers accelerate in the wrong place, the market can trigger a cascade.
💡 Yapuka advice
The CVD is used to look behind the price.
The price shows the result. The CVD showswho pushed to achieve this result.At Yapuka, we use it to confirm real market pressure, spot divergences, and avoid following a move that appears strong on the surface, but lacks real support.