CVD Divergence
Is the move backed by real buying, or is it drifting? Compares price against who is actually hitting the market.
Every trade has a buyer and a seller, but only one of them was impatient — the one who took the offer instead of waiting. Counting the impatient buyers minus the impatient sellers tells you which side is actually pushing.
That count, added up over time. Rising CVD means aggressive buyers are in control; falling means aggressive sellers are. Normally it tracks price, because pushing a market takes buying.
When price makes a new high but CVD does not, the high was not bought — it drifted up while someone quietly sold into it. That is a rally with nothing behind it. The reverse at lows means selling is being absorbed.
Price: higher high. CVD: lower high. Nobody chased the new high — it was sold into. Watch for the level to fail.
Price: lower low. CVD: higher low. Sellers pressed and price would not follow — someone is absorbing them.
This is evidence, not a signal. A divergence says the flow disagrees with the price — it does not say when, or whether, that gets resolved. In a strong trend they can persist for a long time and mean nothing.
Bars either side that must be lower.
Continuation-style, with the trend.
Fetching candles…