Why Delta Can Be Misleading

Positive delta and falling prices? Yes, it can happen.

Delta measures classified aggressive buying versus aggressive selling. It does not directly measure whether buyers are winning.

Suppose buyers aggressively lift offers, but substantial sell liquidity absorbs their orders. Price may struggle to advance or even move lower.

The reverse can happen when aggressive sellers fail to push price lower.

This is why I avoid treating delta as a directional signal on its own.

I want to compare aggressive activity with the actual price response.

If the market is showing strong buying but making no progress, that deserves investigation. It doesn't automatically justify a short, but it can reveal an important imbalance between effort and result.