Cumulative Volume Delta: Are Buyers or Sellers More Aggressive?
Cumulative Volume Delta, or CVD, tracks the running difference between volume executed at the ask and volume executed at the bid, based on the data and calculation method being used.
It can help me examine aggressive buying and selling over time.
If price makes a new high but CVD doesn't, I investigate whether buying pressure is losing effectiveness.
But divergence isn't an automatic reversal signal.
I still want confirmation from price structure and the market's response.
CVD helps me ask better questions. It doesn't predict every move.