What is CVD in order flow?

CVD is cumulative volume delta. Delta measures aggressive buys minus aggressive sells in one bar. CVD keeps a running total of that difference across the session. When CVD rises, aggressive buyers are outhitting aggressive sellers. When it falls, aggressive sellers are outhitting aggressive buyers. It is a scorecard of executed aggression. It is not orders still sitting on the book.

A high CVD print means more market buys than market sells have gone off. It does not mean price must rise. Aggressive buying can run straight into a passive sell wall and get absorbed. The buyers spend themselves, the wall holds, and the move fails. Read CVD as effort. Price is the result.

The useful signal is the shift, not the level. Buyers flatlining on CVD after a push higher does not guarantee a reversal. It makes you pickier. Sellers pressing CVD lower into a bid that will not break is the same idea flipped. CVD tells you who is swinging. Price tells you who is winning.

Sources: How to actually trade order flow · CZT Playbook