How to Dodge a Quickly Changing Trend
Too many traders chase reversals like they’re chasing the Holy Grail, and let me just be straight with you—divergences are not magic. They are not promises. They’re warnings. That’s it. What I’m telling you today, if you take nothing else away, is that divergence isn’t a signal to reverse—it’s a signal that the pace has become unsustainable. And when you recognize that, you shift from reactive trading to intelligent forecasting. Let me break it down: when price is trending—up or down—and your momentum indicator disagrees, it doesn’t mean the trend ends. It means that based on the normal rhythm of price and time, you’ve pushed too far, too fast. The stochastic oscillator, MACD, RSI—whatever you’re using—it’s not telling you to flip your position. It’s telling you to pay attention… You don’t short because you see a bearish divergence. You don’t go long just because the stochastic is oversold. You