Based on the principle of Harmony & Divergence, should we expect this downtrend to continue lower or reverse and move higher?

Understand the Problem

The question is asking whether, based on the principles of Harmony and Divergence, one should expect the current downtrend in a chart to continue or if it will reverse and move higher. It involves analyzing market behavior or patterns.

More Information

In technical analysis, when divergence occurs during a downtrend, it often signals a potential reversal. This occurs when the price makes a lower low but indicators do not follow, suggesting reduced momentum in the trend's direction.

Tips

A common mistake is failing to recognize divergence due to noise in price movements. Ensure to cross-reference with multiple indicators.

Sources

• Trading Divergence and Understanding Momentum - Investopedia - investopedia.com
• Divergence Intro - Complete Forex Trading Education - forexpeacearmy.com