Check the divergence and a confirmation and you can get in the trade, or increase your position accordingly.
Similarly, If you are looking to book profits, you can check your long term chart for a divergence and book partial profits to enter later (once the divergence is confirmed).
We can use this strategy in smaller timelines also. It works on a daily and weekly charts very successfully. The following are some examples. You should definitely test it out on your own charts.
Few of the examples and what happened post the divergence are as following:
and Dr Reddy
The following strategies are for educational purposes only and one should do their own research before making any investment decisions.