How to Identify Buy and Sell Pressure Using CVD indicator
Overview
The CVD (Cumulative Volume Delta) indicator tracks the net difference between buying and selling volume over time. In Supercharts, CVD helps traders visualize net volume momentum, making it especially useful for spotting momentum shifts before price reacts.
Who is this for
- Tndicator trader
- DEX traders
- Momentum traders
Goals
- Identify buy and sell signals
- Confirm price action using volume-based signals
- Improve entry and exit timing on trending tokens
- Avoid false breakouts driven by low conviction volume
Workflow
- Step 1: Go to Supercharts.
- Step 2: Choose your favorite token from Trending or your Watchlist.
- Step 3: Tokens listed only on DEXs tend to work better with the CVD indicator.
- Step 4: Select CVD, our most popular indicator.
- Step 5: Choose a price chart timeframe (15m, 1h, 4h, or 1D) that moves in a similar pattern to the CVD indicator.
- Step 6: Read the pattern:
- When the CVD turns green, it often signals bullish momentum.
- When the CVD turns red, it often signals a bearish signal.
Risks & Considerations
- Works best during active market conditions, not low-volume ranges.
- Less effective on heavily manipulated or illiquid pairs.
Feature Spotlight
Updated 9 days ago
