Order flow: CVD, Delta and divergences
Buying and selling pressure, measured from aggressive orders.
These indicators measure who is in charge of the market: aggressive buyers (those buying at market) against aggressive sellers. The difference between the two is the delta.
CVD and Delta Split
CVD (Cumulative Volume Delta) sums delta over time, bar after bar.
- How to read it: a rising CVD = buying pressure prevails; a falling one = selling prevails. Delta Split shows the bought and the sold part of each bar separately.
- What it is for: confirming (or contradicting) a price move with the volume behind it.
Bar Delta
Shows the delta of a single bar (that candle’s buys − sells), useful for seeing pressure candle by candle.
CVD divergences
Flags when price and CVD move in opposite directions: price makes a new high but CVD does not, for instance. It is often the signal that the move is losing steam.
- How to read it: a marker on the chart highlights the divergence.
The data comes from the real trade flow with the aggressor side; on reconstructed/historical bars the count may be unavailable.