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A study on Divergence !
Price action always gives up to date information. The interpretation of price is an art and not an easy task.
Adding a method to support one’s strategy, and an analysis which has more predictive value, could be very useful.
A proper divergence is only present when the histograms indicating momentum have retraced back to the zero line.
Two subsequent lows or highs where the histograms have not returned to the zero line are not proper divergences. These are sometimes called bad divergences.
Often enough if a trader would zoom in 1-time frame a proper divergence would become noticeable there.
Adding a method to support one’s strategy, and an analysis which has more predictive value, could be very useful.
A proper divergence is only present when the histograms indicating momentum have retraced back to the zero line.
Two subsequent lows or highs where the histograms have not returned to the zero line are not proper divergences. These are sometimes called bad divergences.
Often enough if a trader would zoom in 1-time frame a proper divergence would become noticeable there.
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