Cumulative Volume Delta (CVD): Spotting Institutional Absorption & Exhaustion [2026]
Date Published
1. Order Book Dynamics: Aggressive vs Passive Liquidity
How Price Actually Moves
Price only changes when aggressive market orders completely consume resting limit orders at the best bid or offer. CVD quantifies the persistent aggression of buyers versus sellers.
When aggressive buyers hammer the market but price hits an immovable wall, institutional absorption is taking place. Once buyers exhaust their buying power, price reverses violently.
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