Flow Divergence
A discrepancy between price direction and options flow direction, often signaling potential reversals.
More Details
What is Flow Divergence?
Flow Divergence occurs when the direction of options flow disagrees with the direction of price movement. This discrepancy can signal that institutions are positioning for a reversal.
Learn more: Options Flow Features | Options Flow Scanner
Types of Divergence
- Bullish Divergence: Price falling but call premium rising (institutions buying the dip)
- Bearish Divergence: Price rising but put premium rising (institutions hedging/shorting into strength)
Divergence Signals
| Price | Flow | Interpretation |
|---|---|---|
| Down | Bullish | Potential bottom |
| Up | Bearish | Potential top |
| Down | Bearish | Trend confirmation |
| Up | Bullish | Trend confirmation |
Timeframes
- Intraday: 5-15 minute divergences for scalping
- Daily: End-of-day divergence for swing trades
- Weekly: Persistent divergence for position trades
TradesViz Implementation
The Divergence Scanner automatically identifies symbols where price and flow are moving in opposite directions.
Where to find it in TradesViz
Home > Tools > Options Flow (or click the 4 boxes icon at top right > Options Flow). Divergence Scanner automatically flags symbols where price and flow direction conflict. Bullish divergence (price down, calls up) and bearish divergence (price up, puts up) highlighted. Filter by magnitude.
Example
TSLA down 3% today but cumulative call flow is +8M (bullish divergence).