Support Board
Date/Time: Mon, 25 Nov 2024 13:39:50 +0000
Post From: SPY - CVD Study - Miscalculation****
| [2024-03-10 23:26:18] |
| User677437 - Posts: 29 |
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Trust me, I'm a CVD and orderflow guy. I love my price and volume divergences. But when the CVD is not being correlated to the actual Volume study, that's how I know something is wrong. And let me show you a good segment. Where the Volume study is saying the correct thing. But CVD is not. And it's an incorrect - miscalculation, because of the underlying supply and demand mechanics. If there are more net sellers, price goes down. If there are more net buyers price goes up, that is the general state of the volume to price relationship, and why divergences are very accurate signals for reversals even though they occur infrequently. This segment between the two rays shows a contradiction between volume and CVD studies. The volume study supports the price narrative. |
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