> 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 "market order" buying and selling strength during a specific trend.

#### Why Does CoinKarma Include the CVD Indicator?

CoinKarma features CVD because its LIQ-related indicators are based on bid (buy) and ask (sell) orders from the spot order book—essentially composed of "limit orders." However, when "market orders" consistently drive price movement in one direction during a trend, they can deplete most of the "limit orders," causing LIQ-related data to show excessive extension.

***

## How to Use CVD

This section focuses on comparing CVD with instances of LIQ overextension to demonstrate how CVD can filter out such scenarios.

**Example:**\
In cases where Overall LIQ red bars appear excessively (as marked by the yellow boxes), prices often continue to reach new highs. Observing the CVD during these periods reveals strong market buying activity, which consumes a significant amount of sell (ask) limit orders. This depletion leads to LIQ overextension.

By analyzing CVD, traders can identify these scenarios and avoid taking short positions during such periods.

<figure><img src="/files/BNdIrtumViAHff5hcvMy" 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 %}


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