Reading the market with the terminal 7 / 12
Reading the market with the terminal · With the terminalLesson 7 of 12

"CVD, derivatives and the order book in the terminal"

The chart shows where price went. The order-flow side of the terminal shows who moved it — market buyers or sellers, new positions or closing ones, resting orders that held or vanished. Read with the chart, it turns a candle into a story.

You will learn
  • What the CVD badge's four statuses mean, and how divergences are found
  • How open interest read with price tells new positions from closing ones
  • What funding, the long/short ratio and the order book add — and their limits

Before you start: The Order flow and Derivatives modules explain each value in depth.

Who moved the price

The CVD line adds up the volume delta — market buying minus market selling — candle after candle; the badge reads the last closed candle and names it by two signs, price and delta. The divergence cards compare slopes: price against CVD, and price against RSI or MACD. The right panel adds the derivatives market: funding, open interest and its change read with the price change, the top traders' long/short ratio, then the order book.

CVD, derivatives, order book — the modelled week: the CVD badge on the candle that ran above the equal highs on net selling (passive supply); a bearish CVD divergence before the breakdown; aggressive selling on the breakdown candle; net buying that did not lift the price before the low (passive absorption); shorts closing at the turn up, with negative funding, a crowded-short ratio and short liquidations; longs opening after the break up; and a modelled order book with one large bid.

Reading the combinations

Price and delta pointing the same way is the plain case. The passive statuses are the informative ones: volume that did not get the result it paid for. Open interest separates two very different rises: shorts closing (price up, open interest down) runs out when the shorts are gone; longs opening (both up) brings new money — and new positions that can be squeezed if price turns. Funding and the long/short ratio say how crowded one side is; crowded sides are where squeezes start, not a timing signal.

Takeaways
  1. The badge: price up and delta up is aggressive buying; down and down, aggressive selling; the two mixed cases are passive.
  2. A CVD divergence compares 12 closed candles' slopes; it says how a move was made, not when it ends.
  3. Price up with open interest down: shorts closing. Both up: longs opening.
  4. Funding and the long/short ratio measure crowding; the book shows offers that can be pulled.

Open BTC in the terminal with the CVD on and read the right panel

Further reading

Education only, not financial advice · Updated 28 Oct 2026 · Data: Binance · Report a mistake