Cumulative Volume Delta (CVD)

How Draconic reads it

CVD distinguishes between price moves driven by genuine buyer aggression and moves that happen passively as sellers step back. When price rises because buyers are lifting offers — hitting the ask aggressively — CVD rises with it, confirming the move has real conviction. When price rises but CVD is flat or declining, the advance is passive; sellers are retreating rather than buyers attacking. This distinction matters enormously for trade duration and stop placement. CVD divergence — price making a new high while CVD makes a lower high — is one of the most reliable early exhaustion signals available because it reveals the engine of the move is weakening before price itself confirms it.