Using the "Divergence" Indicator to Analyze Price Trends is Actually Pretty Accurate



Looking at Price + RSI:
- Top Divergence: Price makes a new high, but RSI fails to make a new high in sync
- Bottom Divergence: Price makes a new low, but RSI fails to make a new low in sync

After the Shanghai Composite Index showed top divergence signals in December 24 and November 25, it experienced a deep pullback; after bottom divergence signals appeared in April 25 and December 25, a new round of uptrend began.

Top divergence appeared again in January this year, and from the weekly chart perspective, a bottom divergence pattern hasn't emerged yet.

March has been a bit rough, not sure if April will be even tougher.
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