CVD Divergence
CVD divergence occurs when price and Cumulative Volume Delta move differently in a way that traders consider meaningful. For example, price may make a new high while CVD fails to make a corresponding high.
Why it matters to you
Divergence can indicate that the aggressive buying or selling behind a price move is changing. But it does not prove that price is about to reverse. Different venues, datasets and market structures can produce different CVD readings, so context matters.
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