Divergences are one of my favorite trading concepts because, when paired with other trading tools and concepts, they provide very reliable, high-quality trading signals.
Although indicators, like price action, are somewhat lagging, when it comes to divergences, this lagging feature will actually help us locate better and more dependable trade entries, as we will see below. Divergences in Trading can be used by reversal traders and trend-following traders to time their exits.
Divergences in Trading are a significant part of one of my setups, and they work well with other indications in my trading system. I don’t advise trading divergences independently, but they are good to start.
