Cumulative Volume Delta (CVD) is an order flow indicator that tracks the running total of the difference between buying volume (market orders hitting the ask) and selling volume (market orders hitting the bid) over a given period. A rising CVD indicates sustained net buying pressure, while a falling CVD signals persistent net selling pressure. Divergences between CVD and price — such as price making new highs while CVD declines — can signal weakening momentum and a potential reversal.
Example
“A trader notices Bitcoin's price making higher highs, but the CVD is trending downward, indicating that selling volume is outpacing buying volume. This bearish divergence suggests the rally may be losing steam, prompting the trader to tighten their stop-loss.”