Free 7 Day trial Available With All Our Plans!

Resources

Learn more about our tools and how they can help improve your trading.

All our tools are based on aggregated exchange data which gives you a more complete picture of how traders are positioned in the market.

Cumulative Volume Delta (CVD)

1. Overview

In order to understand the Cumulative Volume Delta (CVD) we first need to understand Delta.

Delta is the different between the buy and sell volume within a specific candle. The delta can be positive, negative or equal to zero.

A positive delta means that the buy volume was greater than the sell volume while a negative delta means that the sell volume was greater than the buy volume. A zero delta means that the buy and sell volume were equal to each other.

The Cumulative Volume Delta displays the cumulative sum of these deltas starting from a point of origin usually the open of the day week or month to the current moment.

2. How Can I use This?

Since the CVD is the cumulative sum of the delta it usually mirrors price. This means that when there is a break in the correlation between price and the CVD it can be a sign of either exhaustion or absorption.

For example, when price makes a lower low while the CVD does not. This shows seller exhaustion as price kept falling without new sellers fueling the trend.

Another example is when the CVD makes a lower low and price does not. This shows seller absorption as aggressive sellers kept hitting the bid but got absorbed by passive buyers.

Both of these scenarios can lead to a reversal in price. The same also applies when comparing highs.

AAVE sellers exhaustion

AAVE buyers abosrption

 

Order Flow (OF)

1. Overview

While the delta shows us the difference between aggressive buyers and aggressive sellers, our orderflow indicator measures the strength of buying or selling depending on which side is bigger. As the difference gets larger, the OF indicator gets more extreme and as the difference gets smaller the indicator gets closer to zero.

2. How Can I use This?

This tool can be used by traders to identify when there is an extreme in aggressive selling or aggressive buying which often ends up being turning points in the market.

When we see an extreme in aggressive buying at a high or aggressive selling at a low those aggressive market participants are likely to end up getting trapped as the market turns around.

The same way when we see an extreme in aggressive buying at a low or aggressive selling at a high it might be the sign that a new trend is about to begin.

BTC buying and selling extremes

Volume

1. Overview

Volume represents the total number of units of an asset that were traded during a given period.

2. How Can I use This?

There are many different ways traders can use volume in their trading.

Two of the main use cases for the volume indicator are to confirm the trend and identify exhaustion/reversal.

For example a market that’s in an uptrend should see rising volume as more buyers step in to keep prices pushing higher. However, if a market is rising on decreasing volume it might suggest that there is a lack of interest and a potential reversal might be around the corner. The same applies for a downtrend.

When we see a sharp move in both price and volume it is usually a sign that the trend might be ending. That sharp increase in volume can be a sign that late buyers or sellers are jumping into the trend and might end up getting trapped.

High volume bar at a low showing late sellers getting trapped

Bearish trend being confirmed by increasing volume

Volume Profile

1. Overview

Contrary to a traditional volume indicator which displays the volume in relation to time, the volume profile displays the volume in relation to price. It takes the total amount of volume traded at each price and plots it in the form of a horizontal histogram.

2. How Can I use This?

The volume profile can be used by traders to identify high volume nodes which are levels where lots of volume has been traded such as the POC (Point Of Control). This is the level with the highest amount of volume traded for a given period.

The volume profile can also help traders identify the value area, which is the price range where 70% of the volume was traded for that given period.

When identified these levels can be used as support and resistance.

ADA using the previous day’s POC used as support

SOL using the current week’s VAH as resistance

Market Sentiment Indicator

1. Overview

Our market sentiment indifcator measures the strength of the accumulation or distribution by participants in the global market.

2. How Can I use This?

Traders can use our Market Sentiment indicator as a guage for whether they want to look for buying or selling opportunities in the market.

When we see strong accumulation in the indicator we want to look for buying opportunities, whereas when we see distribution on the indicator we want to look for selling opportunities.

7 Months historical data from our market sentiment indicator.