Cumulative Volume Delta tracks the running total of up volume minus down volume. A rising CVD shows bulls dominating; falling CVD shows bears dominating. CVD divergences from price are powerful predictors of reversals.
Key Use: Identify hidden buying or selling pressure before price reversal.
CVD = Cumulative(Up Volume - Down Volume)
Up Volume = Volume on bars closing higher than previous
Down Volume = Volume on bars closing lower than previous
Rising CVD
Cumulative up volume > down volume - bulls in control
Falling CVD
Cumulative down volume > up volume - bears in control
Divergence Signals
Price at new high but CVD declining = sellers control; reversal warning
Trend Confirmation
Rising price + rising CVD = strong uptrend; buyers dominate
Hidden Momentum
CVD divergences reveal institutional flows before retail notices
✓ Advantages
⚠ Limitations