When price makes new highs but cumulative delta diverges (makes lower highs), aggressive sellers are absorbing buy orders. Reversal imminent.
Indicators Used
Cumulative DeltaFootprint ChartVWAP
Rules
📉 Bearish Delta Divergence
- Price makes a new high
- Cumulative delta makes a lower high
- Footprint shows absorption (large sells at ask)
- Enter short on first bearish candle close
- Target: VWAP or previous swing low
📈 Bullish Delta Divergence
- Price makes new low, delta makes higher low
- Footprint shows buying absorption at bid
- Enter long on bullish confirmation
💡 Pro Tip
Delta divergence at a naked POC or VWAP creates a confluence signal with 70%+ accuracy in liquid markets.