What CVD Shows
CVD accumulates the difference between taker buy volume and taker sell volume over a period. A rising value suggests market-buy pressure dominated; a falling value suggests market-sell pressure dominated.
If price is ranging while CVD keeps rising, check whether buy pressure is being absorbed. If price holds while CVD falls quickly, read sell pressure together with nearby support zones.
Price Divergence
When price makes higher highs but CVD makes lower highs, chase-buy strength may be weakening. When price makes lower lows but CVD makes higher lows, sell pressure may be slowing.
Divergence is not a confirmed signal. Funding, OI change, liquidation clusters, and news events should explain the same direction before it becomes actionable context.
Limits When Interpreting CVD
CVD can differ by exchange because trade aggregation and data latency differ. Noise is especially high during fast spikes and sharp selloffs.
CVD does not show intent or holding period. Short-term scalping flow and longer-term position entry can be counted in the same direction.