What is divergence? Divergence is a method used in technical analysis when the direction of a technical indicator, usually some form of oscillator ‘diverges’ from the overall price trend. In other words, the indicator starts moving in the opposite direction to the price and the trading oscillator signals a possible trend reversal. Once divergence appears, there...
Hey everyone! 👋 Last week, we explained some of the basics to know when it comes to understanding bullish divergences in the markets. If you haven’t read that post, be sure to check it out here: In this post, we are going to examine just the opposite: bearish divergences! Please remember this is an educational post to help everyone better understand...
In the last 2 threads, we have already covered the basics of divergence and learnt everything about bullish divergence. If you have missed those threads, please go through the first 2 threads before reading this one. Now let's start with our topic, Bearish divergence, which I'll cover in 3 parts: 1. What is bearish divergence? 2. Types of bearish divergence 3....