Delta Divergence at Market Highs
Price makes a new high, but delta tells a different story. What now?
Imagine NQ reaches a new intraday high while the buying delta is weaker than it was at the previous high.
Some traders interpret this as a possible sign of weakening aggressive buying.
However, weaker delta doesn't automatically mean sellers are taking control. Price can continue higher even when delta fails to confirm the move.
What would make the situation more interesting?
A failed breakout, a rejection from the high, or a loss of the previous support level.
I don't want to short simply because two indicators disagree. I want price to provide evidence that the market is actually changing direction.