# Cumulative Volume Delta (CVD)

**Volume** is a critical component of **market movement** — without it, price lacks the necessary liquidity to fluctuate. It originates from two primary sources: * **Market Orders (Taker Orders)** — Aggressive orders that execute at the current market price. * **Limit Orders (Maker Orders)** — Passive orders that remain in the order book until price reaches them. The **Cumulative Volume Delta (CVD)** indicator is a tool for analyzing **market order flow** by tracking the **difference between aggressive buying and selling activity** over time: * **If CVD is increasing**, it means more people are **buying** aggressively (**bullish** signal). * **If CVD is decreasing**, it means more people are **selling** aggressively (**bearish** signal). ## **CVD Types** There are **two main types** of CVD: 1. **Spot CVD** — Measures buying and selling volume on spot markets. 2. **Perpetuals CVD** — Measures buying and selling volume on futures markets (perpetual contracts). By comparing them, you can understand if price moves are supported by **real buying**** (spot)** or just **leverage**** (futures).** TRDR offers **customizable views** of volume data, including: * **Buy vs. Sell Segmentation** — Identifies whether trades are executing at the bid or ask. * **Delta** (absolute difference) — Highlights buy/sell imbalances per time interval. * **Cumulative Delta** — Aggregates buy/sell imbalances over time to track sentiment shifts. * **Delta Aggregation Across Exchanges** — Provides a broader view of market behavior across multiple venues. ## **CVD Settings** CVD settings are highly dependent on the selected **timeframe and your trading style** (scalping, intraday, swing or long-term). * The Accumulation **Length** — there is no "perfect" length, but generally it is recommended to set it to **about** 3-5 times more than the selected timeframe (E.g.: 30, 40 or 50 for 10m timeframe).\ We strongly recommend that you **try** **different CVD lengths** to find the one that works best for **your trading style**.

Example of Length for 10m timeframe on Spot market

* **Always** display **Spot CVD and Perpetuals CVD ****separately** to compare them. Never merge them together!

Always display separately Spot CVD and Perpetuals CVD. Never merge them together!

## **How to Use CVD in Trading?** * Always **compare** Spot CVD and Perpetuals CVD. * Look for **divergences** between price and CVD. * Use CVD with other indicators (like **Open Interest and Funding Rates**). * **Avoid trading against** Spot CVD trends. ## Simple Strategies for Using CVD ### **1. Movement Confirmation (Both CVDs vs. Price Convergence)** **Bullish example:**** when price makes a new High** and both **Spot and Perpetuals CVD are rising,** it signals **good buying sentiment**.

MKR: Movement Confirmation (Bullish CVD Convergence)

**Bearish example:**** when price makes a new Low** and both **Spot and Perpetuals CVD are going down,** it signals **good sell sentiment**.

ETH: Movement Confirmation (Bearish CVD Convergence)

### **2. Reversal or** Exhaustion **Detection (Spot CVD vs. Price)** **Bullish example:**** w**hen **price makes a new Low**, but **Spot CVD does not (or changing its direction)**, it signals **weak selling pressure** (movement reversal or exhaustion is possible).

**Bearish example:**** w**hen **price makes a new High**, but **Spot CVD does not (or changing its direction)**, it signals **weak buying pressure** (movement reversal or exhaustion is possible).

### **3. Fake Move Detection (Spot CVD vs. Perpetuals CVD)** **Bullish example:**** i**f the **price is going Down**, but **Spot and Perpetuals CVDs are going Up**, it means the move is driven by **futures leverage, not real selling**. This is often a **fake dump**, and the price may soon rise **(Bears Trap).**

**Bearish example:**** i**f the **price is going Up**, but **Spot CVD is going Down**, it means the move is driven by **futures leverage, not real buying**. This is often a **fake pump**, and the price may soon drop **(Bulls Trap).**

### **4. Range-Based Hidden Buying/Selling** **Bullish example:** If the price forms **a range** and **CVD is rising** inside of the range, it means **market buys** are prevailing — possible Up movement from this zone (Hidden Buying)**.**

**Another ****Bullish example:**

**Bearish example:** If the price forms **a range** and **CVD is going down** inside of the range, it means **market sells** are prevailing — possible Down movement from this zone (Hidden Selling)**.**

### **5. Uptrend/Downtrend Absorption** **Uptrend absorption example:** If **CVD is making new highs**, **but price isn't**, this shows that there is a lot of activity from **aggressive buyers** trying to push the price higher, but their **market buy orders are getting absorbed by limit sell orders** — could indicate a trap for buyers and possible continuation of the downward movement.

**Downtrend absorption example:** If **CVD is making new lows**, **but price isn't**, this shows that there is a lot of activity from **aggressive sellers** trying to push the price lower, but their **market sell orders are getting absorbed by limit buy orders** — could indicate a trap for sellers and possible continuation of the upward movement.

### **Key Takeaways:** * Spot CVD rising → Real demand, **bullish**. * Perpetuals CVD rising **without Spot CVD** → Fake move, **potential short**. * Price rising, but CVD not → Weak move, **possible reversal**. * CVD rising, price flat → Accumulation, **bullish signal**. * Price **breaks resistance, but CVD weakens** → May signal **a false breakout**. * Strong CVD support at breakout levels → The price is likely to **keep moving in the same direction**. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.trdr.io/key-features-and-indicators/volume-indicators/cumulative-volume-delta-cvd.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.