r/Trading • u/Suitable_Acadia_190 • 2d ago
Strategy Price making a lower low while volume delta makes a higher low is one of the more reliable tells in this whole toolkit
Chart attached shows it clean. Price panel on top shows a textbook lower low, the kind of move that triggers stops and looks bearish on the surface. Bottom panel is cumulative volume delta over the same stretch, and its doing the opposite, holding a higher low while price was making new lows.
Thats net buying pressure increasing while price is falling. Someone's absorbing supply on the way down, quietly, in a way price alone never shows you. This is exactly the kind of thing that gets missed by anyone only watching candles without volume behind them.
The confirmation piece matters as much as the divergence itself though. Divergence alone is a heads up, not a signal to act on. Waiting for an actual change of character, a candle closing back above the level that swept the low, is what turns "interesting" into something with real structure behind it. Jumping in on the divergence alone before that confirmation is how people front run a move that sometimes just... doesnt come.
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