Divergence occurs when the raw price action and a technical indicator disagree, signaling that the current trend is running out of steam.
A short-term moving average (e.g., 50-day) crosses above a long-term moving average (e.g., 200-day). This signals a macro bullish reversal. chapter 8. reversal trading strategies
Trading on reversals means entering the market just as a prevailing trend ends and a new trend begins. It offers massive profit potential by catching big moves early, but carries higher risk because you are trading against the immediate momentum. 🔑 Core Concepts of Reversals Divergence occurs when the raw price action and
Never jump in on the first counter-trend candle. Wait for a follow-through candle to prove the new trend is real. Trading on reversals means entering the market just
Reversals typically occur around major historical supply and demand zones. 📊 Top Reversal Trading Strategies 1. Classic Candlestick Patterns