Although I use CD successfully in my trading I sometimes get confused interpreting the meaning of CD.
So I wanted to write down my view on CD and ask your meaning about it.


In theory there are five scenarios that van happen:

1. Price makes higher highs and CD also makes higher highs.

My interpretation: Traders want to buy the market, but sellers are reluctant to sell, so the buyers bid up the market

2. Price makes higher highs but CD falls

My interpretation: Traders that have bought previously are selling off. There are however still enough buyers who are willing to buy at these levels. Price is possibly topping out.

3. Price makes lower lows and CD also makes lower lows.

My interpretation: Traders want to sell the market, but buyers are reluctant to buy, so the sellers move the market down.

4. Price makes lower lows but CD goes up

My interpretation: Traders that have sold previously are buying back. There are however still enough sellers who are willing to sell at these levels. Price is possibly bottoming out.

5. Price chops and CD also chops.

My interpretation: Price found an equilibrium where both buyers and sellers are happy to buy and sell.

MarpleTrading 

Although I use CD successfully in my trading I sometimes get confused interpreting the meaning of CD. So I wanted to write down my view on CD and ask your meaning about it. In theory there are five scenarios that van happen: 1. Price makes higher highs and CD also makes higher highs. My interpretation: Traders want to buy the market, but sellers are reluctant to sell, so the buyers bid up the market 2. Price makes higher highs but CD falls My interpretation: Traders that have bought previously are selling off. There are however still enough buyers who are willing to buy at these levels. Price is possibly topping out. 3. Price makes lower lows and CD also makes lower lows.it sounds logical...do you use rth or eth for your cd? My interpretation: Traders want to sell the market, but buyers are reluctant to buy, so the sellers move the market down. 4. Price makes lower lows but CD goes up My interpretation: Traders that have sold previously are buying back. There are however still enough sellers who are willing to sell at these levels. Price is possibly bottoming out. 5. Price chops and CD also chops. My interpretation: Price found an equilibrium where both buyers and sellers are happy to buy and sell.

sounds logical..do you use rth or eth for the cd?

bobarian 

sounds logical..do you use rth or eth for the cd?

I am using ETH.

Use the existing thread:

Cumulative Delta Volume Trading I am no expert in CDV, but as I learn more about it I wanted to start a thread to discuss trade ideas. If you see me making mistakes in my analysis, by all means let me know. Some basics: CDV = Cumulative Delta Volume Cumulative meaning growing or …

I am closing this one to prevent a split topic.

Mike