PatternTrader

Thank you for your reply Negotiator. I find regular divergence to be a very accurate indicator, when taken in the proper context at the right areas on a chart. Most indicators are lagging, however divergence uniquely tends to be a leading indicator. Cumulative delta computation and display will vary, depending on where you choose to start your count of delta from. What you are trying to describe in your post above is sellers getting trapped, adding fuel to a reversal. It is always advantageous to have trapped traders fueling your reversal position move, when you can identify it. Your use of the term divergence is not a standard usage, and therefore confusing. I am glad that you have found something that works for you. Regards, PT

I am a little confused by your post. What you are showing is hidden divergence, as opposed to regular divergence. There is a higher low in price, and a lower low in the delta momentum. This can be a sign of continuation in a trend move. However, there really wasn't a trend established yet. If you are trying to demonstrate regular divergence to demonstrate a turning point, this would be seen by lower lows in price in a down move combined with higher lows in the delta divergence, implying a possible trend reversal. What I believe your chart post illustrates, in hindsight, is more sellers getting trapped at or near the lows, contributing to a more powerful subsequent upmove. Regards, PT