divergences

Divergences are pretty straight forward-and yet may be the most misinterpreted tool in technical analysis. Here are a few points to consider: -oscillators are good to measure sideways ranges -indicators measure trend -in trending environment divergences are to be expected but not everyone is a turning point -Precision is key (truly measure-look for the real tops and bottoms on the price scale with your cursor, if time doesn't align correctly it isn't a divergence, i have never seen so many mistakes even seasoned veterans make on this TA tool) -don't squint (slight angles on the divergence lines are not significant) -and as always (only use in conjunction of stacking with other odds, in themselves they are to low of a probability worthwhile exploiting) example for a real divergence:

sideways

= oscillator

=CCI

=stack it (in this case Vegas with momentum turbo)

+measure = the vertical cursor example for a false divergence:

when you use an oscillator in a trending environment

or example of wrong measurements of divergences:

= not a divergence if you draw the vertical lines in you can see that with a precision view the CCI has its highs not at the price highs: