Thursday, May 16, 2019 6:05:27 AM
Divergence OFTEN front runs price directional change.
Not EVERY time...and not for ALL directional changes.
You will see that some divergences print which do not result in price directional change.
But they do front run OFTEN enough to profit from.
Here is an example on a relatively long term chart of the current session
showing a divergence that front ran a price reversal.
"Normally" the highs and lows of indicators mimic the highs and lows of price.
When they don't, it's divergence.
Divergence can print on any time frame chart you may choose to view
and in any market you may choose to trade.
You have to decide when or whether to use it...It's just a technical analyst tool.
Not EVERY time...and not for ALL directional changes.
You will see that some divergences print which do not result in price directional change.
But they do front run OFTEN enough to profit from.
Here is an example on a relatively long term chart of the current session
showing a divergence that front ran a price reversal.
"Normally" the highs and lows of indicators mimic the highs and lows of price.
When they don't, it's divergence.
Divergence can print on any time frame chart you may choose to view
and in any market you may choose to trade.
You have to decide when or whether to use it...It's just a technical analyst tool.
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