Though, divergence is typically used by technical traders when the price is moving in the opposite direction of a technical indicator. Positive divergence signals price could start moving higher soon.
Strong divergence is the most reliable type of divergence, often signaling a significant reversal. It occurs when the price makes a new high or low, but the indicator fails to do so, indicating weakening momentum.
Strong divergence is the most reliable type of divergence, often signaling a significant reversal. It occurs when the price makes a new high or low, but the indicator fails to do so, indicating weakening momentum.
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