Lesson / WY-A-2
Specify whether divergence uses single-bar or cumulative Delta and align price and Delta windows and swing endpoints. A price new high without a CD new high may reflect weaker aggressive buying or thin overhead supply letting less volume move price. A CD new high without a price high may reflect aggressive buying absorbed by passive selling. Downside observations can be symmetrical, but actual swings must validate the mechanism. Single-bar divergence with one candle's extremes is more local and cannot be confused with cross-session cumulative divergence. All divergence first describes relative behavior of two series and may also arise from classification errors, omitted venues, or changed sample/session coverage.
Course content is for learning and research only. It is not investment advice.
Read the Chapter ↗Timestamps
6 lessons · Chapter contents
01I. Distinguish Orders, Quotes, and Trades↗02II. How Aggressor Classification Is Produced↗03III. Bid×Ask in Footprint Charts↗04IV. The Precise Meaning of Delta and Cumulative Delta↗05V. Two Main Explanations of Price–Delta Divergence↗06VI. Using Local Trading Responses in Wyckoff Events↗Observe the market: start with context and place price within its structure.
Understand structure: compare supply and demand, and let evidence support or revise your hypothesis.
Form a view: define risk limits and know when to reassess.
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