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What a Delta Divergence Actually Tells Me

Sachin Yadav

Price makes a new high, but cumulative delta fails to make a new high. Is that a short signal?

Not by itself.

It tells me that the relationship between price progress and net aggressive buying has changed. That deserves attention, but it doesn't guarantee a reversal.

I look for additional evidence: a failed attempt to hold the high, selling pressure that produces downside movement, or a clear change in structure.

Divergence raises a question. Price action and context help me evaluate the answer.

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