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 the current downtrend will continue or reverse based on the principle of Harmony & Divergence, which suggests evaluating a trend in relation to effort and result.
Answer
Reverse and move higher.
The final answer is reverse and move higher.
Answer for screen readers
The final answer is reverse and move higher.
More Information
In technical analysis, divergence occurs when a price trend weakens and is likely to reverse. When a lower low in prices is not matched by a similar low in an indicator, it suggests weakened momentum and a possible reversal.
Tips
A common mistake is misidentifying divergence. Ensure you correctly match price movements with indicator signals.
Sources
- What Is Divergence in Technical Analysis and Trading? - Investopedia - investopedia.com
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