Let’s talk about the CVD indicator—Cumulative Volume Delta.

Simply put, CVD subtracts aggressive sell orders from aggressive buy orders in the market to show net inflows and outflows.

Compared to funding rates and open interest (OI), CVD is more straightforward. It can reflect the battle between buying and selling forces in real time, unlike funding rates which have a lag. When the price is moving sideways but CVD suddenly surges, it often means someone is quietly accumulating; on the other hand, if the price rises but CVD weakens, it could be a fake breakout signal.

Used together with candlestick charts, this tool can help you see the true movements of major funds.