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, a current downtrend in a financial chart is likely to continue or reverse. This involves analyzing market trends and their implications.
Answer
Reverse and move higher.
The downtrend is likely to reverse and move higher.
Answer for screen readers
The downtrend is likely to reverse and move higher.
More Information
Divergence in technical analysis often signals a reversal in trend, suggesting prices may start moving higher when observed in a downtrend.
Tips
A common mistake is misidentifying divergence; always ensure the divergence is significant with reliable indicators.
Sources
- What Is Divergence in Technical Analysis and Trading? - Investopedia - investopedia.com
- Trading Divergence and Understanding Momentum - Investopedia - investopedia.com
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