What if there is way to sell near the top or buy near the bottom of a trend ? And if you are already in a long position and you could know ahead of time the perfect place to exit instead of watching your unrealized gains.
Well, There is a way! It’s called Divergence Trading !!
Divergence can be seen by comparing price action and the movement of an indicator. It does not really matter what indicator you use. You can use RSI ,MACD , CCI and the stochastic. The great thing about divergences is that you can use them as a leading indicator. When traded properly, you can be consistently profitable with divergences. The best thing about divergences is that you are usually buying near the bottom or selling near the top. This makes the risk on your trades are very small relative to your potential reward.
How to find out Trading Divergences : The price and the indicators normally move hand in hand. If price is making higher highs, the os…