Linear Regression CVD

How to Read It:
Rising CVD: Aggressive buyers are in control (Market Buys > Market Sells).

Falling CVD: Aggressive sellers are in control (Market Sells > Market Buys).

Key Trading Strategy (Divergence):
The most powerful way to use CVD is to look for Divergences:

Bearish Divergence (Absorption): Price makes a New High, but CVD makes a Lower High.

Meaning: Price is rising, but aggressive buying power is drying up. Limit sellers are absorbing the buys. A reversal may be coming.

Bullish Divergence (Absorption): Price makes a New Low, but CVD makes a Higher Low.

Meaning: Price is dropping, but aggressive selling is weakening. Limit buyers are stepping in.