Distinguish bar delta from cumulative delta
Bar delta is the difference between ask-side and bid-side executed volume within a bar. CVD accumulates those differences over a defined period. Comparing two CVD highs requires the same starting point; a reset between them changes the basis.
Compare two highs
In a synthetic window, price rises from a high of 20,000 to a new high of 20,010. CVD reaches +1,200 contracts at the first high and +900 at the second, both measured from the same session start. Price makes a higher high while CVD does not.
This describes a divergence. It proves neither an imminent decline nor the absence of buying. Price can continue higher, trade sideways or reverse later.
Read the data label
Check whether CVD in the PRAETIR web chart uses bid/ask data, mixed data or a proxy estimate. A proxy series must not be described as a precise measurement of aggressive executions. Record any change of data basis inside the observed window.
Review what happened next
Mark both timestamps, the reset, instrument and data source. Use one consistent observation window afterward and retain failed hypotheses. Choosing only a perfect turning point after the event biases the review.
| Point | Price high | CVD |
|---|---|---|
| A | 20,000 | +1,200 |
| B | 20,010 | +900 |
Sources and methodology
Sources explain concepts or the respective provider’s product descriptions. Worked examples are original and synthetic. Verify current contract specifications before use.