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Learning path Tools Technical Indicators

CVD indicator: feed, anchor, and reset

Configuring CVD requires checking the volume source, side classification, anchor period, session, and reset. Different settings produce different curves.

This page covers CVD indicator configuration. Its definition and running-sum calculation are explained in Cumulative Volume Delta; here the goal is to make the platform's curve understandable and reproducible.

In plain terms — Before interpreting CVD, check what it is adding and when it starts again from zero. Without those two details, you cannot compare two charts.

Four configuration checks

  1. Volume source — verify the instrument, venue, and feed coverage. In fragmented markets, one venue does not represent the whole market.
  2. Classification — determine whether the aggressor side comes from the feed, is inferred from bid and ask, or is estimated from lower-timeframe price direction.
  3. Anchor — select the period that matches the question: session, day, week, or a custom interval.
  4. Session and reset — document the time zone, trading hours, breaks, and reset rule.

Quantity filters, trade aggregation, and the choice between volume and execution count must remain unchanged during a comparison.

Verification before use

Open a short data window and check that a single bar's delta agrees with its bid/ask values or with the declared method. Then reload the chart: if the curve changes, verify the historical availability of bid/ask fields and the loaded starting point.

A second useful check is to compare two platforms using the same symbol. If their curves diverge, do not choose the one that looks “better”: compare their venue, session, volume source, classifier, and available history.

Common problems

Empty or flat curve. The feed may not supply historical bid/ask volume, or the chart type may not support the calculation.

Different values after reloading. The start of loaded data, historical reconstruction, or classifier may have changed.

Divergence from price. This is a relationship between two series, not an automatic diagnosis of absorption or a sufficient reversal signal.

Sources