Blog / Crypto
Order Flow Basics: Order Book, Tape and Cumulative Volume Delta
Order flow shows who is buying and selling right now. Learn the order book, trade tape, CVD and what each can and cannot tell you.
Three views of the same market
The order book (depth) lists resting limit orders. The tape (time and sales) lists executed trades. Cumulative volume delta (CVD) adds up buy-initiated volume minus sell-initiated volume over time.
Reading the book
Large resting bids and asks can act as support or resistance, but they can be pulled before price arrives, a tactic called spoofing. Treat the book as information about intent, not as a guarantee.
Delta and absorption
If price rises with positive CVD, buyers are aggressive and the move is supported. If price falls but CVD rises, aggressive buying is being absorbed by passive sellers, a sign the drop may fail. Divergence between price and delta is the most useful read.
Limits
Order flow data is most reliable on single exchanges and is noisy on short windows. Combine it with levels from the chart and keep your stop and risk plan. You can watch live order flow for major crypto pairs on our free order flow page.
Example: absorption at a level
BTC drops into a daily support at $62,000. Sellers hit the bid heavily and the tape shows large sell volume, yet price stops falling and CVD starts rising. Passive buyers are absorbing the aggressive selling.
A trader waits for a 5-minute candle to close back above the level, buys with the stop under the low and targets the nearest resistance. The order flow gave the clue; the level and candle gave the entry.
Where beginners go wrong
Treating one large order on the book as a wall that will hold, trading every flicker of delta on a one-minute window, and using order flow without a stop. Use it as a confirmation tool at levels you already chose from the chart and keep your usual risk limits.
Key takeaways
- Book = intent, tape = actual trades.
- CVD shows aggressor pressure.
- Divergence is more useful than level.
- Spoofing means the book can lie.
Related
Educational content, not financial advice.