:: Strategy Trader ::

Onsen Cumulative Delta Divergence

(Works with other Z’s indicator)

Onsen Cumulative Delta Divergence is very powerful tool that detects piece
pullback and reversal. In combination with market structure & levels, SnR
levels and key fib levels such 0.5, 0.61, 0.71 & 0.79 may provide excellent and
pinpoint entry opportunities
■ What is Onsen delta divergence and the logic behind it?
Divergence is defined as a case when the price of an asset is moving in the opposite direction of a
technical indicator, such as Onsen delta divergence. For example, the asset price is moving up, but
the Onsen delta line is moving in the opposite direction. The opposite situation is also divergence.
Divergences are used to an attempt to determine, if a trend is getting weaker, which may lead to a
trend reversal or continuation.
In order for a divergence to exist, the price must have either formed one of the following:
Higher high than the previous high
Lower low than the previous low
Double Top
Double Bottom
There are two types of divergences:
Regular divergence
Hidden divergence
Divergence doesn’t mean price may response immediately. Some tines it reacts immediately and
sometimes it takes few days. Understand market levels, structures and institutional sentiments are
vital. The following contents may help to understand.
To understand the divergence better, please follow the following videos:
https://www.youtube.com/watch?v=JXSJDE3EzN8
https://www.youtube.com/watch?v=TxWaV_ttgwg&t=2940s
Market structure:
https://www.youtube.com/watch?v=el9lIuTy-fw
https://www.youtube.com/watch?v=WLCUxpv-TmA
Market levels:
https://www.youtube.com/watch?v=xMzu2QDgCD0

Note: Please check the Z’s VIP room & currency trading room for more
examples from the live market and go through with those recommended
educational contents to understand the market makers sentiment & increase
accuracy of onsen delta divergence.

Onsen Hasan
Equity & Currency Trader

Please do not share this file outside of Zeiierman’s community.

My settings: Not required. Everyone should have his or her own trading strategies. The following
settings are based on my H1 TF strategy but divergence occurs in various TF.
Example 1: WTI H1 Bearish Regular & Hidden Divergence
https://www.tradingview.com/x/C7TakSJP/
Divergence often indicates the trend reversal after a long-term trend. In the following example,
market makes a typical 3 pushes to the top and trend strength was fading (same scenario could
occur for the downtrend). Meanwhile, onsen delta divergence identifies a regular bearish
divergence (price makes higher high but Onsen delta makes lower low) and price breaks the
previous high. In the pullback there is another divergence has taken place, which is hidden bearish
divergence (2nd down arrow)

2 possible entries. Second entry is after breaking the structure

Example 2: AUDUSD H1 Bullish Regular & Hidden Divergence
https://www.tradingview.com/x/gHBjjDja/
Divergence often indicates the trend reversal after a long-term trend. In the following example,
market makes a typical 3 pushes to the bottom and trend strength was fading. Meanwhile, onsen
delta divergence identifies a regular bullish divergence (price makes lower low but onsen delta
creates higher high) and price breaks the previous low. In the pullback there is another divergence
has taken place, which is hidden bullish divergence (2nd down arrow)

2 possible entries. Second entry is after breaking the structure

Example 3: SPX & DE30 H1 Bearish & Bullish Divergence
https://www.tradingview.com/x/TvnkTDuL/
Divergence does not always response immediately. Based on the market condition, structural
level, market fundamental and son on, it may response immediately or later. In the lowing
example the bearish divergence reacts almost immediately, while the bullish divergence has to
wait until the consolidation period to brake and price filed to continue to fall (wick rejection).

Similar situaton with the DE30

Example 4: NZDUSD H1 Bullish Divergence
NU at previous week low and YL. Diverging since 26th. London opening hour creates a doji
that indicates weak selling momentum. In-lining with buy/sell and onsen delta divergence.

and it’s been diverging for a few days

Therefore, it is important to check how the overall price and divergence are associating together
in the last few days.
Example 5: EURCAD H1 Bearish Divergence
https://www.tradingview.com/x/pFHibjPz/
in the Asian session, price purged the buy side liquidity and relative equal highs from 22 and
23rd Feb. Other confluences are multiple wick rejections at previous day's high and round
number. Now looking at the delta divergence, it is in-lining with those confluences and showing
bearish divergence. Thus, this is a solid divergence.

Example 6: GBPUSD H1 Bearish Divergence

In combination with onsen FX algo and onsen delta divergence.
ADR + Exhausted Volume + Delta Dvg

[Please refer to the Onsen FX algo manual and the currency trading room for better
understanding]
Example 7: BTC M5 Bearish Divergence
Price has taken out the previous buy side liquidity, and created a double top.

BTC on Daily chart. Notice that Onsen divergence predicted the bearish sentiment after the
bullish trend.
Example 8: Gold H4 Divergence
https://www.tradingview.com/x/T7pFNYXO/
Notice that how powerful and accurate when we combine it with the structural levels, SnR and
Fib levels. 5 divergences in H4 time frame with almost no draw down.

Gold M15: Bullish divergence and long opportunity after the structural breakout. Onsen delta
has been diverging in respect to the price move.
Example 9: AAPL H1 Bullish Divergence
https://www.tradingview.com/x/3OUuEclo/
Bullish divergence at support level. How cool is that!

Example 10: AAPL H1 Bullish Divergence

https://www.tradingview.com/x/mCckVR1i/
Onsen delta divergence most often can identify a possible trend reversal. Moreover, with Fib
levels and in line with onsen delta can provide excellent entry accuracy.

Final words: Practice, practice & practice.

Good Luck!