To succeed as a trader in 2026, mastering a combination of **technical analysis**, **order flow insights**, **risk management**, and **psychological discipline** remains essential. Markets continue evolving with AI-assisted tools, real-time data, and increased volatility from geopolitical and economic shifts, but the core principles—especially the volume-based and price-driven concepts I highlight—are timeless and highly effective for day, swing, or intraday trading.

Market/Volume Profile
Volume Profile displays the distribution of traded volume across price levels over a specific period (e.g., session, week, or visible range). It reveals where the most activity occurred, highlighting "value areas" where buyers and sellers agreed on a fair price.

- Point of Control (POC): The price with the highest volume—acts as a magnet or strong support/resistance.
- Value Area High/Low (VAH/VAL): The range containing ~70% of volume—prices often oscillate within this before breaking out.
- High/Low Volume Nodes (HVN/LVN): HVNs are consolidation zones; LVNs are potential acceleration points on breakouts.

Traders use it to identify acceptance (balance) vs. rejection (imbalance), entering trades at LVNs in trending markets or fading extremes in ranging ones. In 2026, with advanced platforms, combining them with footprint charts enhances precision for spotting institutional activity.

Cumulative Volume Delta (CVD)
CVD tracks the running total of the difference between aggressive buying (market buys) and selling (market sells) volume. Positive CVD signals buyer dominance (potential upside); negative indicates seller control.

- It reveals order flow imbalances → divergences (e.g., price making higher highs but CVD lower highs) often precede reversals.
- Useful for confirming trends or spotting exhaustion.

Traders pair CVD with Volume Profile to validate entries—e.g., positive delta at a POC support level strengthens a long bias. It's a core order flow tool, especially in futures/crypto, for seeing "hidden" aggression behind price moves.

Supply and Demand Zones
These are price areas where significant buying (demand) or selling (supply) previously occurred, often marked by strong rallies from bases (demand) or drops from rallies (supply).

- Fresh zones (untested) are strongest → price often reverses or consolidates there due to unfilled orders.
- Overlapping with Volume Profile HVNs adds confluence.

In practice, buy at demand zones in uptrends (with confirmation) and sell/short at supply in downtrends. Risk management: Place stops beyond the zone. This concept underpins institutional trading, as large players defend/attack these levels.

VWAP and AVWAP
Volume Weighted Average Price (VWAP): The average price weighted by volume since the session open—resets daily. A price above VWAP suggests bullish control; below, bearish. Institutions benchmark executions against it.

Anchored VWAP (AVWAP): Same calculation but anchored to a specific event (e.g., breakout low, earnings gap, or swing point). It measures "true" fair value from key moments, acting as dynamic support/resistance over longer periods.

Traders use the daily VWAP for intraday mean reversion (fade extremes) or trend-following (ride it). AVWAP shines for swing trading—e.g., anchoring to a major low for long-term support. In 2026, AVWAP remains a favourite for multi-timeframe analysis, often combined with profile tools.

Raw Price Action
The foundation: Reading candlesticks, patterns (e.g., pin bars, engulfings, inside bars), trends, and support/resistance without indicators.

- Focus on context: Higher timeframe bias + lower timeframe triggers.
- Key setups: Breakouts/retests, pullbacks in trends, reversals at key levels.

Pure price action teaches market psychology—e.g., rejection wicks show failed attempts. It's essential for discretion, filtering false signals from tools like profiles or delta.

Other Necessary Components
While the above form a powerful order flow/volume-centric edge (especially effective in futures, forex, and stocks), no trader succeeds without these universals:

**Risk Management** — Risk 1-2% per trade max; use favorable risk/reward (at least 1:2); position sizing based on volatility/stop distance. This preserves capital during drawdowns— the #1 reason traders fail.

**Trading Psychology & Discipline** — Control emotions (fear/greed); stick to a plan; journal trades for review. Success is 80% mindset—overtrading or revenge trading, wipes out edges.

**Backtesting & Journaling** — Test strategies historically; track win rate, expectancy, and mistakes.

**Market Context & Fundamentals** — Understand broader drivers (e.g., economic data, news events) to avoid trading against macro flows.

**Emerging Enhancements (2026 Trends)** — AI-assisted pattern recognition, real-time sentiment tools, and automated execution are rising, but use them to augment—not replace—core skills like these.

Combine these (e.g., price action trigger at a demand zone with Volume Profile confluence, positive CVD, and AVWAP support) for high-probability setups. Start paper trading one market/timeframe, build consistency, and scale. Trading is probabilistic—focus on process over individual outcomes for long-term success.

It is about GOLD, but more importantly, it is about the factors behind the manipulation and movement (of all assets, actually).

BeatlemaniaSA wrote: Thu Dec 11, 2025 8:08 pm It is about GOLD, but more importantly, it is about the factors behind the manipulation and movement (of all assets, actually).

Holy shit

Spazmus wrote: Wed Dec 10, 2025 8:42 pm Today's test is on gold. Very cool! Thanks Master! I'm still learning, but the system is awesome.

This looks great. Could you share your MT5 trading system? thank you

What Are CVD Divergences?

Cumulative Volume Delta (CVD) divergences occur when the price action and the CVD line move in opposite directions, revealing a mismatch between visible price trends and underlying aggressive buying/selling pressure. CVD tracks the running total of volume delta (aggressive buys at the ask minus aggressive sells at the bid). Divergences signal potential trend exhaustion, hidden accumulation/distribution, or upcoming reversals, as the aggressive order flow contradicts the price movement.

Traders identify divergences by comparing swing highs/lows in price to those in the CVD indicator (usually plotted as a line or histogram below the price chart). These are similar to classic oscillator divergences (e.g., RSI or MACD) but are based on real order flow data.

Types of CVD Divergences

There are two primary types: regular (classic) and hidden. Regular divergences often signal reversals, while hidden ones suggest trend continuation.

1. Bullish Divergence (Regular/Classical Bullish)
- Price: Makes lower lows (downtrend appears strong).
- CVD: Makes higher lows (net buying pressure is increasing despite falling prices).
- Interpretation: Sellers are aggressive but unable to push prices much lower—buyers are absorbing the selling (hidden buying pressure). This suggests the downtrend is weakening and a reversal upward is likely.
- Trading Implication: Potential long entry or reversal buy signal. Often seen at market bottoms.
2. Bearish Divergence (Regular/Classical Bearish)
- Price: Makes higher highs (uptrend appears strong).
- CVD: Makes lower highs (net buying pressure is decreasing).
- Interpretation: Buyers are aggressive, but prices aren't sustaining new highs—sellers are absorbing the buying (hidden selling pressure). This indicates weakening momentum and potential downward reversal.
- Trading Implication: Potential short entry or reversal sell signal. Common at market tops. 3. Hidden Divergences (Less Common but Useful for Continuations)
- Hidden Bullish: Price makes higher lows (pullback in uptrend), but CVD makes lower lows → Suggests continuation of uptrend.
- Hidden Bearish: Price makes lower highs (pullback in downtrend), but CVD makes higher highs → Suggests continuation of downtrend.

These are advanced and less frequently discussed, but they can filter for trend-following trades.

How to Spot and Trade CVD Divergences
1. Chart Setup: Use platforms with accurate order flow data (e.g., Bookmap, NinjaTrader, Sierra Chart). Avoid approximations on TradingView for a precise delta.
2. Identification: Draw trendlines on price swings and CVD swings. Look for breaks in alignment at key levels (support/resistance, volume profiles).
3. Confirmation: Never trade divergences alone—combine with:
- Price action (e.g., candlestick reversals, breakouts).
- Other tools (Volume Profile, RSI oversold/overbought, footprint charts for absorption).
- Context (e.g., at session highs/lows or news events).
4. Examples in Footprint Charts: Divergences often appear clearer with footprint (order flow) charts showing per-price-level delta. Limitations and Tips
- False Signals: Divergences can persist in strong trends (e.g., price ignores CVD temporarily due to limit order absorption).
- Best Markets: Works well in liquid instruments (futures like ES/NQ, crypto perpetuals) on intraday timeframes.
- Risk Management: Use stops, wait for price confirmation, and backtest. Many traders note that divergences provide context, not standalone entries.
- Pro Tip: Reset CVD at session start for intraday clarity, or use multi-timeframe analysis.

CVD divergences offer a powerful edge for understanding "who's really driving the market," but success comes from experience and confluence with other analyses.