> For the complete documentation index, see [llms.txt](https://docs.trdr.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.trdr.io/key-features-and-indicators/volume-indicators/cumulative-volume-delta-cvd.md). # 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**.