advanced · TRADING LEARNING GUIDE
Chapter 14 — Delta Divergence & Price Divergence
Green/red: bar delta · Blue: running sum from zero
HYPOTHETICAL LEARNING DIAGRAM · NOT LIVE DATAWhat is this concept?
A divergence occurs when price and a specified delta measure disagree, such as a new price low without a new CVD low. Define the comparison horizon and reset first.
Daily learning workflow
1. Identify the instrument, venue and observation interval. 2. Read the chapter definition and reproduce its worked calculation. 3. Watch the supporting workshop and compare its platform conventions with your data. 4. Mark two swings and record both price and CVD. 5. Record what happened, what you inferred and what would invalidate your interpretation.
Evidence and interpretation
Keep three separate notes: observed transactions or book changes; your explanation of those observations; and a paper rule with a defined failure condition. Compare at least one counterexample. Do not turn an illustration into a live claim.
Worked example
Hypothetical worked example: Price falls from 100 to 99.8 while CVD low improves from −500 to −350. This disagreement is not an entry by itself.
Common mistakes and limits
Do not treat this observation as a guaranteed signal. Check the venue, data classification, session boundaries and costs. A candle or aggregated order book does not reveal the identity or total holdings of traders.
Practice
Mark two swings and record both price and CVD. Use recorded or paper data. Log the observation before revealing the outcome.
Resources and further reading
These sources explain definitions and underlying mechanics. Worked examples are original illustrations; a source does not establish the profitability of a custom pattern.
Public creator-hosted education. Embedding does not mean open-source licensing or endorsement.
Primary reference for footprint display and bid/ask volume conventions. Platform-specific settings must be checked.