Order flow
How do I differentiate between a short-covering rally and genuine institutional long-term accumulation using CVD?
By Easy Money Scanner · Educational reference · Not investment advice
The short answer
Short-covering rallies show rising price with declining or flat cumulative delta as shorts buy to exit, while genuine accumulation shows price and CVD rising together steadily.
How it works
Distinguishing the two requires watching whether aggressive buying persists after the initial spike; short-covering often fades quickly while accumulation sustains higher volume over time.
An example
CVD flattens as price spikes, suggesting short-covering.
Risk & limitations
Order-flow reads are inferential and can be misinterpreted.
Examples are hypothetical, not trade recommendations. US contract and regulatory references do not automatically apply in Canada. Rules, margin requirements and broker policies can change; confirm them with the relevant authority and your broker.