Jesse RogersFounder and CEO of Smart Trading Blueprint

9 Figure Trader Spots Fake Breakouts Using CVD

11 May 2026 · 1 min

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In this segment, the trader explains a practical CVD (cumulative volume delta) technique for spotting fake breakouts and momentum breakdowns. He emphasizes watching for a sharp CVD drop—an "absorption" signal—before price reaches a critical level (specifically the 0.025 mark). A hard CVD dump at that level is treated as a red flag, indicating that the market lacks the necessary buying pressure to sustain a breakout. To illustrate, he likens the price level to a heavy door with a 300‑pound person behind it: without sufficient momentum (a running start), the market will struggle to push the door open, suggesting the breakout will fail.

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This is a CVD trick that I love for momentum breakdowns or breakouts. I want to see the CVD dump hard here before we tap into the liquidity. If we tap into that 0.025 level and then the CVD starts dropping hard, that's a big red flag for me because that would signal absorption. So I want to see the drop in CVD before we start breaking through the level. Think of it this way. It's like that, that big buy level is like a big heavy door and there's like a 300-pound dude standing behind that door. Yeah. For the market to break it down like it wants to have a big running start, right? So if it, if it like has no running start and then tries pushing on the door really, really hard, it's probably not going to open.