🔹Divergence
Last updated
Last updated
Price is in an uptrend & momentum indicator making a High & Lower High
Price is in a downtrend & Momentum indicator is making Low and Higher Low
Indicators like Bill Williams, Awesome Oscillator (AO) to measure divergence.
Bearish Divergence indicates Correction in an uptrend
Bullish Divergence indicates Correction in a downtrend.
In wave patterns, divergence helps to locate the 5th wave of the Motive wave as the 5th wave usually shows a lowering of momentum which is visible through divergence appearing in an oscillator. Recommended indicators to use for divergence are Awesome Oscillator, RSI, and Momentum.
