Journal
Divergence that still needs price acceptance
Divergence shows a disagreement between price highs or lows and oscillator highs or lows. It is a warning of fading momentum, not a completed reversal. Treating it as an automatic flip invites early entries into a still-dominant trend.
Confirmation arrives when price accepts beyond a chosen level — a broken swing, a reclaimed opening range, or a failed continuation attempt — while the oscillator continues to support the new story. Without that acceptance, divergence remains a hypothesis.
In class we replay charts where divergence appeared two or three times before price finally turned. Students mark each instance and note which ones had acceptance. The pattern becomes obvious: patience was the missing technique.
If you teach yourself one habit this quarter, let it be this: no divergence entry mark until price has done its part.