📊 Cumulative Volume Delta (CVD) — How to Track Smart Money Like a Pro 💰🧠
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What is CVD?
CVD (Cumulative Volume Delta) is a tool that adds up the difference between market buys and sells over time.
🔹 Positive CVD = More aggressive buyers
🔹 Negative CVD = More aggressive sellers
It helps you see who’s in control — buyers or sellers — even if price is moving sideways or faking out 👀
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🔍 Why CVD Matters:
• It reveals hidden strength or weakness
• It helps spot divergences = early signals of reversal
• It’s used by institutional traders to detect liquidity grabs
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🧠 How to Read CVD:
📈 Price Up + CVD Up
→ Healthy bullish move 🟢
(Buyers pushing price with conviction)
📈 Price Up + CVD Down
→ 🚨 Bearish divergence
(Buyers weak, price might reverse soon)
📉 Price Down + CVD Down
→ Strong bearish pressure 🔴
📉 Price Down + CVD Up
→ 🚨 Bullish divergence
(Sellers losing momentum, possible bounce)
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🔧 How to Use CVD in Your Trading:
✅ 1. Combine with Key Levels
• At resistance? Look for bearish divergence
• At support? Look for bullish divergence
✅ 2. Confirm Breakouts or Fakeouts
• Breakout + rising CVD = strong move
• Breakout + flat/negative CVD = fake pump warning
✅ 3. Spot Smart Money Absorption
• Price stable but CVD rising = stealth accumulation
• Price flat but CVD dropping = stealth distribution
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⚡ Example Strategy:
1. Mark your key support/resistance
2. Wait for price to reach it
3. Watch CVD reaction on 5-15 min chart
4. 🔻 If bearish divergence at resistance = short
🔺 If bullish divergence at support = long
5. Target quick scalps or trail profits if volume confirms
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CVD is one of the most powerful tools for reading real-time sentiment 📊
Start tracking it and you’ll spot traps and fakeouts before the crowd.