Delta
Divergence

When price makes new highs but cumulative delta diverges (makes lower highs), aggressive sellers are absorbing buy orders. A reversal often follows.

Order Flow1m, 15m2:1 R:RAggressive
Deploy This Strategy See Rules

Rules & Configuration

The full rule set, required indicators, suggested configuration, execution flow, and performance parameters for the Delta Divergence setup.

When price makes new highs but cumulative delta diverges (makes lower highs), aggressive sellers are absorbing buy orders. A reversal often follows.

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 in liquid markets.

Common questions

What is the Delta Divergence strategy?

When price makes new highs but cumulative delta diverges (makes lower highs), aggressive sellers are absorbing buy orders. A reversal often follows.

What's the pro tip for trading Delta Divergence?

Delta divergence at a naked POC or VWAP creates a confluence signal in liquid markets.

What indicators does the Delta Divergence strategy use?

The Delta Divergence strategy uses the following indicators: Cumulative Delta, Footprint Chart, VWAP. These can be configured directly in AlgoBars AlgoBuilder.

What timeframe works best for Delta Divergence?

The Delta Divergence strategy is best traded on the 1m–15m timeframe. This can be adjusted based on your trading style and market conditions.

More Order Flow Strategies

🛡️ Absorption Reversal 📊 Cumulative Delta Divergence 💥 Selling Climax Reversal