Delta Divergence

From: $9.99 / month

Highlight when buying or selling conviction is out of step with price action


Delta is the difference in buying power (market orders lifting the ask) and selling power (market orders hitting the bid). A bar where more trades lifted the ask than hit the bid, i.e. more buying than selling power will have positive Delta and a bar with more selling than buying power, i.e. more trades hit the bid than lifted the ask, will have negative Delta.

Delta provides confirmation of price movements. With more buying than selling activity, a price rise will be accompanied by positive Delta. As buying activity slows and selling activity increases, negative Delta can be expected. It follows therefore that buying activity accompanied by negative or falling Delta is an indication of the possibility that price will pause or change direction.

The emoji trading Order Flow Suite Delta Divergence indicator signals when price reaches its daily, or a swing high or low if the Delta is opposite to, or weaker than what would be expected from the price direction. It also allows filtering based on price action to take into account whether we have also seen a reversal in the direction of price at the bar’s close.

This indicator provides a strong signal of the possibility of a reversal in price direction.

Delta Divergence conditions are also indicated as part of the Delta Snapshot indicator.

Delta Divergence may be licensed for Sierra Chart on a Lifetime, 1-month or 3-month basis, or as part of the complete Emoji Trading Order Flow Suite. Licences include all indicator updates and enhancements during the license period.

Input Name Description
Signal Divergence at: Specifies whether Delta Divergence conditions are signalled only at the Daily High/Low or at the highest high/lowest low over the previous n bars specified by the Lookback Period input. Note! Signals at the Daily High/Low are only indicated for the current day when connected to a data feed or running a replay.
Lookback Period The number of bars back over which a recent high/low is considered.
Delta Specifies whether a Delta Divergence condition is indicated when Delta is opposing price, i.e. negative Delta at a high, positive Delta at a low, or weaker than previously, i.e. lower Delta at the current bar than at the previous high bar and higher Delta at the current bar than at the previous low bar.
Require Price Reversal? Specifies whether a high bar needs to close lower than it opened or a low bar needs to close higher than it opened in order for a Delta Divergence to be indicated.
Symbol Offset The offset in ticks above/below the Delta Divergence bar to display the Delta Divergence indication.

ID Subgraph Description
SG1 Delta Divergence Condition Evaluates to 1 when a buying condition occurs, -1 when a selling condition occurs, 0 otherwise.
SG2 Delta Divergence Indicator Settings for the indicator drawn to show a Delta Divergence.