1
CVD
Running total of ask-classified volume minus bid-classified volume.
Lesson · Volume and Order Flow
Cumulative Volume Delta
Accumulate bid-ask delta through time and compare aggressive flow with price structure.
Core concepts
What to understand
Keep the interpretation direct: participation, aggressive side, and actual price progress.
2
Confirmation
Price and CVD make compatible directional progress.
3
Divergence
Aggressive flow progresses while price does not, or price progresses without matching flow.
Interactive lab
Change the market conditions
Use the controls and read the “What the market is doing” explanation after each change.
Cumulative Volume Delta Lab
Synthetic educational data · no live market connection
MARKET DATA
Reading process
Follow the reading steps
Do not jump from one number to a trade. Describe the evidence first.
Read price structure
Up, down, or range?
Read CVD structure
Is cumulative aggression rising or falling?
Compare progress
Agreement supports control; disagreement suggests absorption or changing participation.
Knowledge check
Check your interpretation
Select one answer for each question. Feedback appears immediately.
1. Price and CVD both make higher highs. This shows:
Buy-side aggression and price movement agree.
2. CVD rises strongly while price stays flat. This may show:
Aggressive buys are occurring, but price is not progressing.
3. CVD depends on:
Classification and reset rules materially affect the series.
4. From a reset at zero the bar deltas are +300, −100, +200 and −500. What is CVD after the fourth bar, and what was its highest value along the way?
Running total: +300, +200, +400, −100. The high was +400 after bar three; the last bar's −500 takes it below the reset.
Practical rules
- Define session and reset conventions.
- Treat classification as an estimate.
- Confirm divergence with price structure.
Common mistakes
- Assuming CVD is identical across data vendors.
- Calling every divergence a reversal.
- Ignoring off-exchange and aggregated-data limitations.
References
Official reading
The lab is simplified; these sources provide the underlying market and execution definitions.
CME Group · Market Makers vs. Market Takers
Official overview of liquidity providers and traders seeking immediacy.
CME Group · What is Volume?
Official overview of how futures volume is counted and interpreted.