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Why a Strong Trend Can Have Negative Delta

Sachin Yadav

Can NQ move higher while delta remains negative?

Yes.

Delta measures the difference between volume executed at the ask and volume executed at the bid. It doesn't measure every factor influencing price movement.

A market can rise despite negative delta if selling fails to push price lower and buyers continue supporting higher prices.

I pay attention to the relationship between delta and price rather than expecting them to move in the same direction all the time.

The mismatch itself can be useful information.

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