There are two types of divergences, a positive divergence and a negative divergence. The majority views a positive divergence as a buying opportunity and a negative divergence as a selling opportunity. A positive divergence occurs when the price of an asset keeps declining and making lower lows while the technical indicator makes a higher low; a negative divergence occurs when the price of an asset makes a higher high while the technical indicator makes a lower high.
There are some technicians who view a divergence as a continuation signal, which camp do you belong to?
I view a positive divergence as a buying signal and a negative divergence as a selling signal but only together with other aspects of technical analysis and not stand alone.
There are some technicians who view a divergence as a continuation signal, which camp do you belong to?
I view a positive divergence as a buying signal and a negative divergence as a selling signal but only together with other aspects of technical analysis and not stand alone.
