By Marco BösingWhat Are Delta and CVD?
Delta measures the difference between volume traded at the ask (aggressive buys) and volume traded at the bid (aggressive sells) within a single candle. A positive delta indicates buying pressure; a negative delta indicates selling pressure.
The Cumulative Volume Delta (CVD) sums delta values across multiple candles, forming a running line. Divergences between CVD and price are among the most powerful order flow signals: if price rises while CVD falls, the aggressive buying power behind the move is lacking.
Delta and CVD are indispensable tools for assessing the true strength or weakness behind a price movement.