It is amazing how little we hear about divergence in main stream trading circles. Is there any other type of technical analysis tool that is as accurate of a leading indicator as divergence? If you already use divergence in your trading, you know how powerful of a tool it can be.
Why is divergence seldom used if it is so powerful? Many traders find divergence to be very difficult to understand and to read on a trading chart using traditional methods. There are several different parameters that can cause a lot of confusion and lead to potential hesitation. It is very easy to overlook great divergence trading opportunities either because you did not know what to look for or you simply missed it.