Module 3 · Sweeps & Application
Volume Dots & CVD
What's hitting the liquidity — and net order flow.
In this lesson you'll
- Read volume dots (size + aggressor side)
- Use CVD to gauge net aggressive flow
- Spot CVD divergence as an absorption tell
The heatmap shows resting liquidity; volume dots show what's hitting it. Dot size = trade size; dot color = aggressor side (buy vs sell aggressor). Big dots clustered at a holding band = absorption; shrinking dots at an extreme = exhaustion.
The most useful read is CVD divergence: when price stays flat or rises while CVD falls (or vice versa), aggressive flow isn't confirming price — usually a sign that hidden passive orders (often an iceberg) are absorbing the aggression.
Key takeaways
- Volume dots: size = trade size, color = aggressor side.
- CVD = running sum of aggressive buys − sells; it tracks net aggressive flow.
- CVD divergence (price up, CVD down) flags absorption / hidden passive orders.
- Heatmap + dots + CVD together tell the full order-flow story.
Check your understanding
Pick an answer to reveal instant feedback. Answer every question to complete the lesson.
Why that's off: Confirmation would require CVD to also make a higher high.
Why that's off: Divergence is meaningful, not an error.
Why that's off: It's one of the more useful order-flow tells.
When price rises but net aggressive flow (CVD) doesn't, the move lacks aggressive demand — often hidden passive sellers absorbing. It's a classic warning at highs.
Why that's off: Resting size is the heatmap color, not the dot.
Why that's off: The spread is the bid-ask gap, unrelated to dot size.
Why that's off: Dots encode trade size/side, not time.
Volume dots plot executed trades: dot size = trade size, color = aggressor side. (Resting size is the heatmap color, a separate thing.)
Educational content only. Nothing here is financial or trading advice. Order-flow and options patterns shift probabilities; they never guarantee outcomes.