📊 TECHNICAL
Cumulative Volume Delta (CVD)
A running total of estimated Volume Delta over time, tracking the cumulative tilt between buying and selling pressure — approximated from OHLCV data, not raw ticks.
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Live Demo — Cumulative Volume Delta (CVD) applied to NIFTY 50 (illustrative)
PriceEMA(9)EMA(21)SMA(20)
What is Cumulative Volume Delta?
Sums Volume Delta bar-by-bar to show whether estimated buying or selling pressure has dominated over an extended stretch. Like the underlying Volume Delta, CVD here is an approximation built from OHLCV bars, not tagged tick-by-tick executions.
Formula
Delta(bar) = Volume(bar) * ((Close-Low)-(High-Close))/(High-Low)
CVD(bar) = CVD(bar-1) + Delta(bar)Parameters
| Parameter | Default | Description |
|---|---|---|
| Reset point | Chart start / session | Where accumulation begins |
| Source | Estimated Volume Delta | Same OHLCV-based approximation |
Signal Interpretation
- A rising CVD line alongside rising price confirms the uptrend is backed by sustained estimated buying.
- CVD turning down while price makes new highs is a classic bearish divergence warning.
- CVD rising while price falls can flag hidden accumulation (bullish divergence).
- Sharp slope changes often coincide with the start or end of impulsive moves.
- Per-bar estimate errors can drift over long ranges — treat the shape/trend as the signal.
Tips & Best Practices
- Reset CVD at a meaningful point when comparing pressure over a specific period.
- Pair with price structure to spot divergence rather than reading CVD alone.
- This is an OHLCV-based estimate; a true tick/order-flow feed would be materially more accurate.