My journey trading has been great thus far. I have had the greatest benefit of meeting some of the markets best and most experienced traders in the last few months. To our benefit and success as an academy, I have had the great humbling experience to have take on a partner and the academies future lead instructor, which has personally gained over 20 plus years of trading experience in the futures and commodities markets. The name is still, “to be announced” but he has built some of the sharpest traders in his past and also a few successful retail online academies. One of the main key strategies I have been learning and creating a specific trading plan around this is divergence.
Have you heard of divergence? Do you know what it is? I always heard of it in my equities days, but flew right past it when it came up. Because trends are composed of a series of price swings, momentum plays a key role is assessing trend strength. As such, it is important to know when a trend is slowing down. Less momentum does not always lead to a reversal, but it does signal that something is changing, and that the trend may consolidate or reverse.