99% off code [ TTI_GIFT_36TQ_OHQ4_OTZM_VK51 ] on your first month*

Trading Tech Innovation

Automate improve your trading

We offer the most advanced and innovative trading tools on the market.

> Do not wait any longer to focus on you.

CDV and Open Interest Anticipating Price Action Movements

All you need to discover and use it.

Have you ever wondered how to anticipate price movements in the financial markets? While predicting market trends with certainty is impossible, there are indicators that can provide insights into the balance between buyers and sellers, as well as the overall liquidity in a market. In this article, we will explore two such indicators: Cumulative Volume Delta (CDV) and Open Interest (OI). By understanding and analyzing these indicators, traders can gain a better understanding of market dynamics and potentially anticipate price movements

  • Understanding Cumulative Volume Delta (CDV)
  • The Cumulative Volume Delta (CDV) is a powerful indicator that measures the balance between buyers and sellers in a given market. It provides valuable insights into the strength and direction of a trend. A positive CDV indicates that buyers are more active, suggesting a bullish trend. Conversely, a negative CDV indicates that sellers are more active, indicating a bearish trend.
  • The CDV is calculated by taking the difference between the volume of buyers and sellers at each price level and cumulatively adding those differences. This cumulative value provides a visual representation of the strength and direction of the market trend.

  • Examining Open Interest (OI)
  • Open Interest (OI) is another crucial indicator that measures the total number of outstanding futures contracts in a market. It provides insights into the liquidity and popularity of a particular market. Higher open interest generally indicates greater liquidity and can help traders anticipate potential price movements.
  • When open interest is high, it suggests that there is a large number of market participants actively trading in a particular market. This increased activity can indicate significant interest in the market, potentially leading to strong price movements.

  • The Relationship Between CDV and Open Interest
  • Interestingly, the CDV and open interest often move in opposite directions. This inverse relationship between the two indicators can provide valuable insights into the market's sentiment and potential trend reversals.
  • When CDV and open interest are moving in opposite directions, it suggests that liquidity is being recovered, leading to a potential shift in market direction. This phenomenon occurs when traders holding losing positions (known as "Rekt") are forced to exit their positions, resulting in an imbalance of supply and demand. This imbalance can trigger a shift in the market's sentiment and potentially lead to a change in trend.

  • Anticipating Price Movements
  • By analyzing CDV and open interest together, traders can gain a more comprehensive understanding of the market dynamics and potentially anticipate Price Movements.
  • Here's how:
  • 1. Identifying CDV and Open Interest Convergence
  • When CDV and open interest are both increasing simultaneously, it suggests that a reversal in CDV is likely approaching. This convergence of CDV and open interest indicates a potential hunt for liquidity, as the increase in open interest may attract market participants looking to take advantage of the anticipated price movement. Traders can watch for this convergence as a possible indicator of an impending trend reversal.
  • 2. Monitoring CDV and Open Interest Divergence
  • Conversely, when CDV and open interest are moving in opposite directions, it suggests a potential shift in market sentiment. Traders can monitor this divergence as it may indicate a change in trend direction. If CDV is increasing while open interest is decreasing (or vice versa), it may indicate a decrease in liquidity and a potential reversal in the market.
  • 3. Assessing Magnitude and Speed of CDV and Open Interest Movements
  • The magnitude and speed at which CDV and open interest change can also provide valuable insights. Sharp, significant movements in CDV and open interest can indicate strong market sentiment and potential price breakouts. Traders should pay attention to the intensity and momentum of these changes to gauge the strength of market trends.


While anticipating price movements in the financial markets is never guaranteed, analyzing indicators like Cumulative Volume Delta (CDV) and Open Interest (OI) can provide valuable insights into market dynamics. By understanding the balance between buyers and sellers and the overall liquidity in a market, traders can gain a better understanding of potential price movements. Remember, these indicators should be used as tools in conjunction with other technical and fundamental analysis to make well-informed trading decisions. Happy trading!


> "The CDV and open interest provide a window into the market's sentiment and potential trend reversals. By analyzing these indicators together, traders can navigate the ever-changing landscape of the financial markets."






Our Performances

Better than words.

NEXO results

NEXO

Annual: 556%
Total: 1112%

RNDR results

RNDR

Annual: 664%
Total: 1993%

MINA results

MINA

Annual: 601%
Total: 1805%


Our Results

Better than words.

© 2024 Trading Tech Innovation
MINA (long & short) - 1 H - 73% winrate - Over 405 trades - 300% Net profit since 2021
ETH (long) - 1 H - 68% winrate - Over 425 trades - Backtest since 2017
ADA (long) - 1 H - 76 Net profit
LINK (long) - 1 H - 68% winrate - Over 255 trades - Backtest since 2019
QNT (long & short) - 1 H - 78% winrate - Over 208 trades - Backtest since 2021 - 305% Net profit - Only 6% Drawdown
BTC (short) - 30 min - 70% winrate - Over 354 trades - Backtest since 2019
EAPropFirm - 14 consecutive wins
THETA - 75% winrate - Over 543 trades - Backtest since 2019 - 412% Net profit
Stablecoin investment strategy to generate safe passive income of over 30% a year
CRV (short) - 30 min - 78% winrate - Over 108 trades - Backtest since 2020
BTC (short) - 1 H - 69% winrate - Over 236 trades - Backtest since 2019
EAPropFirm - 0.5% profit in 1 day
BTC (short) - 1 H - 70% winrate - Over 397 trades - Backtest since 2019
EAPropFirm - 10% in 1 day
BCH (long) - 30 min - 70% winrate - Over 132 trades - Backtest since 2019
BNB (long) - 30 min - 79% winrate - Over 105 trades - Backtest since 2020
ETH (long) - 1 H - 76% winrate with trailing - Over 213 trades - Backtest since 2019
ETH (long) - 30 min - 72% winrate - Over 112 trades - Backtest since 2019
AVAX - 83% winrate - Over 265 trades - Backtest since 2020 - 266% Net profit
LINK (long) - 1 H - 78 Net profit
VET (long) - 1 H - 70% winrate - Over 663 trades - Backtest since 2019
BNB (long) - 1 H - 70% winrate - Over 188 trades - Backtest since 2017
EAPropFirm - 4.9% up in 3 trading days
EAPropFirm - XAU (long & short) - 1 H - 72% winrate - Over 151 trades - Consolidation period of 5 days
CKB (long & short) - 1 H - 80% winrate - Over 673 trades - Backtest since 2021 - 531% Net profit
EA PropFirm in 24h - 19 wins for 0 lose
ETH (long & short) - 1 H - 75% winrate - Over 486 trades - Backtest since 2017 - 6500% Net profit
EAPropFirm - 0.78% today, 6% on the account in total
BTC (long & short) - 1 H - 74% winrate - Over 271 trades - Backtest since 2017 - 848% Net profit - Equity Mode
BTC (long) - 15 min - 69% winrate - Over 305 trades - Backtest since 2018
TAO - 83% winrate - Over 203 trades - Backtest since 2023 - 232% Net profit
NEXO (long & short) - 1 H - 92% winrate - Over 172 trades - Backtest since 2022 - 240% Net profit
AXS (short) - 30 min - 70% winrate - Over 137 trades - Backtest since 2020
XAU (long) - 1 H - 75% winrate - Over 124 trades - Backtest since 2019
ETH (long) - 1 H - 79% winrate - Over 812 trades - Backtest since 2019
EAPropFirm - Profited 85.6% from ny and Asian session
BNB (short) - 30 min - 76% winrate - Over 139 trades - Backtest since 2020
CKB - 80% winrate - Over 673 trades - Backtest since 2021 - 531% Net profit
EAPropFirm aggressive mode and 5x my investment in 2 days. +400%
BTC (long) - 1 H - 75% winrate - Over 920 trades - Backtest since 2019
TRX (long) - 1 H - 1.25 R - 69% winrate with multi TP - Over 435 trades - Backtest since 2018
FTM (long) - 30 min - 68% winrate - Over 184 trades - Backtest since 2020
ALGO (short) - 30 MIN - 69% winrate - Over 189 trades - Backtest since 2020
BTC (long) - 1 H - 1.75 R - 68% winrate - Over 588 trades - Backtest since 2017
ETH (short) - 30 min - 73% winrate - Over 180 trades - Backtest since 2019
ETH (short) - 1 H - 70% winrate with multi TP - Over 909 trades - Backtest since 2018
EAPropFirm almost 5% return on initial capital in 3 days - Gold - 1H Timeframe
----


Blog articles

Order Book Spoofing Handbook article

Order Book Spoofing Handbook

Understanding the Order Book, HeatMap Analysis, and the Risk of Spoofing in Trading...
Read more

Break of Structure and Continuation of Structure article

Break of Structure and Continuation of Structure

In the realm of technical analysis in trading, two crucial terms stand out: Break of Structure (BOS) and Continuation of Structu...
Read more

CDV and Open Interest Anticipating Price Action Movements article

CDV and Open Interest Anticipating Price Action Movements

Have you ever wondered how to anticipate price movements in the financial markets? While predicting market trends with certainty...
Read more




User reviews

Susandu13 review

Susandu13

We Love TTI
This tool is a game-changer, seamless integration between Tradingview and Metatrader for automatic

TontonWilliams review

TontonWilliams

Simplicity and Reliability
Their tools are easy to use and reliable, no technical hassle, just well-executed trades

Blupblup review

Blupblup

Real Success Rates
A 72% success rate over the last 2 months, truly satisfying and will continue with it



Still not convinced?