📌 Lesson 2: Delta & CVD Analysis – Understanding Institutional Activity

📍 Objective: Learn how to interpret Delta & Cumulative Volume Delta (CVD) to spot institutional buying/selling pressure.

🔹 1. What is Delta?

Delta = Buy Volume – Sell Volume in a given period.

Positive Delta → More aggressive buyers (market buys exceed market sells).

Negative Delta → More aggressive sellers (market sells exceed market buys).

👉 Delta shows the net buying or selling pressure.

However, smart traders don’t just look at raw Delta—they compare Delta with price action to detect absorption, reversals, or continuations.

💡 Key insight: Institutions don’t use limit orders as much as retail traders. They use market orders to absorb liquidity.