Delta Divergence
When price makes a new extreme but delta doesn't confirm, someone is absorbing. Catch the reversal early.
What is Delta Divergence?
Volume delta is the difference between market-buy and market-sell volume on each candle. Divergence happens when price makes a new extreme but delta doesn't confirm — e.g. price makes a lower low, but buyer aggression (positive delta) is actually higher than on the prior low. That tells you institutions are absorbing the selling, not participating in it.
Why It Works
Delta divergence is one of the earliest signs that a trend is about to exhaust. Price is making headlines — but underneath, aggression has flipped. Traders who read delta get in ahead of the chart breakout that confirms the reversal.
How to Trade Them
Look for a bear flag or extended downtrend where the final leg shows diminishing seller aggression. Enter SELL at the final breakdown candle — your entry marks the short side of the divergence. Tight stops required, because these reversals can whip.
Your Mission
Spot the weakening pressure. Hit SELL at the divergence extreme.