The Power of Divergence in Technical Analysis: A Comprehensive Guide
In the world of trading, technical analysis is a crucial tool that traders use to make informed decisions. One of the most potent concepts within technical analysis is “Divergence.” Understanding divergence can give traders a significant edge in predicting price reversals, thereby allowing for strategic entry and exit points. This article aims to delve deep into the concept of divergence, its types, and how traders can effectively use it in their trading strategies.
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