ORDER-FLOW EDUCATION
CVD Divergence Without the Shortcut
Treat cumulative volume delta divergence as a question about aggression and price response, not an automatic reversal call.
Questions for a divergence
- Is the selected CVD session or reset point appropriate?
- Does price reach a new extreme while net aggression does not, or vice versa?
- Is opposing liquidity absorbing activity at a meaningful location?
- Does subsequent price action confirm or cancel the hypothesis?
Data definitions matter
CVD depends on trade classification and the chosen window. Compare like with like and avoid conclusions based on an arbitrary reset.
Review step
Save a before-and-after capture, then review the observations against the rules written in advance. Do not redefine success after seeing the outcome.