Divergence Strategy Guide: Trading Market Reversals and Trend Continuations
Ever noticed how sometimes a market keeps climbing, but it just feels like it's running out of steam? Or it's falling, yet the pressure to sell seems to be easing? That's the kind of hidden story a divergence strategy helps you spot. It’s a way of reading between the lines of price action to catch potential reversals or trend pauses earlier than most.
Think of it like this: price tells you what is happening, but momentum indicators can hint at why it's happening and how much strength is behind the move. A divergence strategy simply looks for when these two things—price and momentum—start telling different stories.
