Overview
Cumulative Volume Delta (CVD) is a running sum of the difference between buy volume and sell volume across all bars. Unlike per-bar delta, CVD accumulates over time, producing a continuous line that reveals the underlying buying or selling pressure driving price action.
- Rising CVD means buyers are consistently dominating — more volume is being executed at the ask.
- Falling CVD means sellers are in control — more volume is hitting the bid.
CVD is one of the most widely used order-flow indicators because it strips away noise and shows the net commitment of market participants over time.
How It Works
Each bar contributes its delta (buy volume minus sell volume) to a running total:
CVD[n] = CVD[n-1] + (buyVolume[n] - sellVolume[n])
Chart Type
| Property | Value |
|---|
| Type | Subchart |
| Position | Below main chart |
| Data source | Trade-level buy/sell classification |
Settings
| Parameter | Description | Default |
|---|
| color | Line color | #22d3ee |
| lineWidth | Line thickness | 1.5 |
| displayMode | Rendering style | line |
| highlightAnomalies | Flag statistical outliers | false |
| anomalyThreshold | Standard deviation multiplier for anomalies | 2.0 |
| anomalyPeriod | Lookback period for anomaly calculation | 50 |
| gradientIntensity | Fill gradient strength (0-1) | 0 |
| positiveColor | Color when CVD is rising | #22c55e |
| negativeColor | Color when CVD is falling | #ef4444 |
Display Modes
| Mode | Description |
|---|
line | Continuous line (default). Best for trend reading. |
columns | Per-bar columns showing cumulative value. |
candles | OHLC-style candles of CVD itself. Useful for spotting CVD reversals. |
Interpretation
CVD Confirms Price
When CVD moves in the same direction as price, the trend has genuine order-flow backing. Buyers are lifting offers on rallies, or sellers are hitting bids on drops.
CVD Diverges from Price
This is the primary signal. When price makes a new high but CVD does not (bearish divergence), it suggests that the rally is not supported by aggressive buying. The reverse applies for bullish divergences.
CVD diverging from price is one of the most powerful signals in order-flow analysis. A rising price paired with falling CVD indicates hidden selling — large participants distributing into the rally.
Anomaly Detection
When highlightAnomalies is enabled, bars where the CVD change exceeds the rolling mean by more than anomalyThreshold standard deviations are flagged. These often correspond to institutional activity or news-driven bursts.
Practical Examples
- Trend confirmation: Price trending up with CVD making higher highs — strong trend, stay with it.
- Exhaustion: Price pushes to a new high, CVD flattens or drops — buyers are thinning out.
- Accumulation: Price consolidating while CVD steadily rises — hidden buying before a breakout.
CVD is cumulative and unbounded. Its absolute value matters less than its slope and divergences relative to price.