> For the complete documentation index, see [llms.txt](https://docs.coinkarma.co/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.coinkarma.co/english/indicators-guide/cvd-cumulative-volume-delta.md).

# CVD(Cumulative Volume Delta)

## What is CVD (Cumulative Volume Delta)?

CVD is an indicator used to analyze the balance of buying and selling pressure in the market. It accumulates the volume difference between buy and sell orders over a given time period.

In simple terms, CVD reflects the buying and selling strength of "market orders" during a given move.

<br>

## Why Does CoinKarma Include the CVD Indicator?

Because CoinKarma's LIQ-related indicators are all based on bid (buy) and ask (sell) orders from the spot order book, that is, "limit orders." When "market orders" keep pushing in one direction during a move, they can consume most of the "limit orders" at the same time, causing LIQ-related data to show overextension.<br>

## How to Use CVD

This section compares CVD with instances of LIQ overextension to show how CVD can be used to filter out LIQ overextension.

Example: overextension during Overall LIQ red bars. In the yellow box, Overall LIQ red bars appear frequently, yet price keeps making new highs. Looking at CVD at the same time, we can see that market buying during this period was very strong, consuming many sell (ask) "limit orders" and causing Overall LIQ to overextend. Observing CVD can therefore help filter out the choice to go short.

<figure><img src="https://3881674611-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FLNdPzU6psKxnGpgv182e%2Fuploads%2FYHsS4cZ2Y0luhQI8kaOb%2Fimage.png?alt=media&#x26;token=c8596955-23fc-488a-a963-eca249274d30" alt=""><figcaption></figcaption></figure>

{% hint style="info" %}

#### **Disclaimer**

Thank you for using CoinKarma. The data provided is based on historical performance and cannot guarantee future market trends. The cryptocurrency market is highly volatile. Users must assess risks and bear responsibility for their decisions.
{% endhint %}