hard · Order Flow Analysis footprint-delta
A 30-year Treasury futures (ZB) bar makes a new session high with bar Δ = -600 (bearish divergence at the high). At the same moment, the 60-minute higher-timeframe cumulative Δ is strongly positive and has been rising in a clean uptrend for the past four hours with no prior signs of stalling.
How should the lower-timeframe divergence be weighed against the higher-timeframe cumulative Δ trend?
- As a high-conviction reversal short, since any bearish divergence at a new high outweighs the higher-timeframe delta trend.
- As a low-conviction early caution flag, since one divergent bar can't yet outweigh four hours of confirmed higher-timeframe buying.
- As irrelevant noise to be fully discounted, since the higher-timeframe cumulative Δ trend always overrides any lower-timeframe signal by definition.
- As proof the higher-timeframe trend has already reversed, since divergence at a new high is definitionally a trend-change signal regardless of timeframe.
Sign up free to see the explanation and track your rank →
More Order Flow Analysis footprint-delta practice
- An E-mini S&P 500 footprint bar shows a price level at $4510… — Using a 300% threshold, wh
- What is the primary advantage of using the range-based chart in this scenario?
- A trader is looking for a short entry. They see a red candle… — What does this 'Wick-Body'
- If both bars have a volume of 5000 contracts, what does the 4-tick bar suggest?
- Why is it recommended to ignore the Δ of a bar that is pulling back to a long entry zone?
- In the Euro FX ($6E), you see 944 contracts bought aggressiv… — What does this suggest abo
- A trader sees the price of Crude Oil (CL) drop to $72.50, wh… — How should this be interpr
- What does a 'Narrow' VWAP standard deviation band width suggest about the current market e