Order Flow Basics

Cumulative Volume Delta (CVD) explained

CVD is the running total of delta — every candle's aggressive buy volume minus aggressive sell volume, accumulated through the session. It is the single clearest line describing who has been in control since the open.

From delta to CVD

Each candle has a delta: ask-side volume minus bid-side volume. CVD simply adds these up bar after bar. A rising CVD means buyers keep initiating more volume than sellers; a falling CVD means the opposite. Because it accumulates, CVD filters out bar-to-bar noise and exposes the session's underlying pressure.

On VolumeLens, CVD resets at the start of each trading session (IST), so the line always answers "who has controlled today?"

Price–CVD divergence

The highest-signal CVD read is divergence: price makes a new high while CVD does not (or vice versa). Price rising without net aggressive buying means the move is being driven by something other than initiative flow — often short covering or thin liquidity — and such moves have a documented tendency to retrace. Price falling while CVD rises means aggressive buying is being absorbed into the decline.

Divergences are context, not certainties: they flag that the tape and the chart disagree, which is exactly when a closer look pays.

CVD vs volume

Total volume says how much traded; CVD says who forced it. A 10-lakh-share bar could be perfectly balanced (delta ≈ 0) or utterly one-sided (delta ≈ ±10 lakh). Volume without side information hides the most useful part.

Frequently asked questions

How is CVD calculated?

Each trade is classified as buyer-initiated (at the ask) or seller-initiated (at the bid); delta per bar is the difference, and CVD is the running sum of deltas across the session.

Does CVD reset daily?

On VolumeLens, yes — CVD resets at each session start (IST), so the line always reflects the current day's net pressure.

What is a CVD divergence?

When price and CVD disagree — for example price sets a new session high but CVD does not. It flags that the latest push lacked net aggressive participation.

Is CVD available for NSE stocks?

Yes. VolumeLens computes tick-classified CVD for roughly 2,000 NSE symbols and index derivatives.

Watch CVD live on any NSE chart

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