Binary CDD describes whether Supply-Adjusted CDD on any given day was above or below the historical average. In general, it shows whether longer-term market participants are entering or exiting the market.
Binary CDD is calculated by measuring the average CDD over time (for all past days), and calculating whether the CDD on any given day is higher or lower than this number. Above-average CDD receives a value of 1, while below-average CDD receives a value of 0.
Hans Hauge - Introducing Binary Adjusted BDD