How should divergences be handled? What is Divergence?

Divergences are only used as reference signals for operational yes, and reversals do not necessarily occur immediately after divergences

The so-called divergence is that the two are not in the same direction and depart from back to back, and the anti-divergence is the negation of negation, which is in the same direction. Exactly the opposite of what you say.

Question 1: What is Divergence?

Question 2: What does divergence mean?

Divergence, simply put, is the trend inconsistency, when the divergence characteristics once appeared, it is a more clear signal to take action, usually there are two kinds of indicator divergence, one is the top divergence, the other is the bottom divergence.

Top divergence usually appears in the high-end position of **, when the high point of ** is higher than the previous one, and the high point of the indicator is lower than the previous high point of the indicator, that is, the indicator is at a high level, and forms two peaks lower than the first peak, and at this time** corresponds to a peak higher than a peak, it means that the indicator suspects that the current ** is a strong external strength, suggesting that **will soon reverse**, which is the so-called top divergence. It is a relatively strong sell signal.

On the contrary, the bottom divergence generally appears at the low level of **, when the low point of ** is lower than the previous low, and the low point of the indicator is higher than the previous one, that is to say, when the indicator thinks that **will not continue**, implying that the stock price will reverse**, this is the bottom divergence, which is a signal that you can start buying.

The indicators that can form obvious divergence characteristics of technical indicators include MACD, WR, RSI, KDJ, etc., and their patterns have the characteristics of divergence from **.

Divergence features need to be aware of:

1. The effectiveness of various technical indicators is not the same, and when analyzing technical indicators, relatively speaking, the divergence between RSI and KDJ is used to judge the success rate of the steering is higher.

2. Indicator divergence generally appears more reliable in a strong position, that is, when it is at a high level, it usually only takes one divergence pattern to confirm the reversal pattern, and when it is at a low level, it is generally necessary to repeatedly appear several times before the reversal pattern can be confirmed.

3, the divergence after passivation is more accurate, if the operation is completely based on the divergence characteristics, it will often bring a large mistake, this situation is particularly easy to appear when the ** appears ** or soaring trend, the KDJ indicator is likely to be high or low after the passivation, the stock price still appears ** or **, in fact, at this time, once the divergence feature is highly effective, especially when the KDJ indicator combined with the RSI indicator to judge the stock price trend, KDJ in the process of judging the bottom and the top, It has a strong pointing effect.

4. Pay attention to the identification of false divergences, usually false divergences tend to have the following characteristics:

Divergence in one time period does not diverge at other times, such as divergence on the daily chart, but not divergence on the weekly or monthly chart;

Divergence occurs without entering the high area of the indicator, what we call using divergence to determine the top and bottom, and the divergence of the technical indicator above 80 or below 20 is more effective, preferably after a period of passivation. And between 20 and 80 is often the characteristic of a strong adjustment rather than divergence, and the market is likely to continue ** or **;

An indicator diverges and other indicators do not diverge, various technical indicators often diverge due to the different design of their indicators, and the divergence time is also different, in the divergence KDJ is the most sensitive, RSI is second, MACD is the weakest, the significance of a single indicator divergence indicator is not strong, if various indicators diverge, this is the highest probability of peaking or seeing low.

This is a situation that is often seen in the stock stool check. That is, according to technical analysis, this ** ticket should be down and burning, but now the actual situation is rising, indicating that the ** ticket and technical indicators do not match. We generally call this a divergence.

It can generally be considered that this rise is problematic.

The meaning of department: (moving) to leave: the homeland. Violation: The principle of not being able to educate.

Pinyin] [ bèi lí ]

synonyms] violation, transgression, transgression, betrayal.

antonyms] to attach, to follow, to follow, to follow, to attach.

Synonyms of divergence1. Violation. Pinyin: [ wéi fǎn ].

Interpretation] (moving) does not meet; Non-compliance: Discipline.

synonyms] disobedience, disobedience, transgression, deviance.

antonyms] to obey, to follow, to obey, to obey, to follow.

2. Betrayal. Pinyin: [ bèi pàn ].

Explanation] (moving) renegade, rebellion: faith|Fatherland.

synonyms] surrender, defection, rebellion, rebellion, defection, betrayal, mutiny, betrayal.

antonyms] surrender, faithfulness, faithfulness, submission, loyalty.

Deviance is a Chinese word, pronounced bèilí, which means to leave, disperse, or violate, which means to deviate from the original, usual, normal, or recognized track, or to deviate from the conventional, normal, or habitual track. From "Yuan Dian Zhang, Bingbu III, Pu Ma".

deviatefrom] is a clear departure from the original, usual, normal, or recognized track from the traditional path.

Yuan Dian Zhang, the Ministry of War III, and the Laying of Horses": "The galloping personnel deviated from the station road to do office work, and ordered the passing states and counties to change the shops and horses according to the regulations.

"Letter to Zheng Dong Guo": "Brother is lonely in the city today, and the morale of the people has deviated for a long time.

Deviation refers to departure, discretment, or violation, which refers to departing from the original, usual, normal, or recognized track, or deviating from the conventional, normal, or conventional.

Deviation is a Chinese word, pronounced bèi lí.

Citations explained:

1. Leave; Discrete.

Source: "Yuan Dian Zhang, Military Department Three, Laying Horses": "The galloping personnel turned away from the station and went to the place to do office work, and ordered the state and county to change the shop horses according to the regulations. ”

2. Violation. Source: Yao Xueyin Chapter 18 of Volume 1 of "Li Zicheng": "The loss of some gold, silver and jewelry is still a trivial matter, but the important thing is to lose the heroic spirit of our uprising leader who stood up to the sky and the earth, and deviated from the purpose of the uprising." ”

synonyms: violation, transgression, transgression, betrayal, parting.

Antonyms: to attach, to follow, to follow, to follow, to follow, to attach, to cling, to follow, to follow, to follow,

The word "deviate" forms a sentence:

1. It is not enough to sacrifice dignity, if you want to have the last laugh in this cruel game, you must also deviate from the principle.

2. If these problems cannot be effectively solved, they will constitute a legal obstacle to the transaction of the right to use public housing, and will inevitably lead to the deviation between the legislative purpose and the actual effect.

3. This is why the tail of the comet always moves away from the direction of the sun.

4. Society has deviated far from the basic meaning of the word "society". Even though we have a lot of contact, we don't have time to find new value in each other.

5. Traditional people are furious when they see a deviation from tradition, mainly because they take this deviation as a criticism of them.