Integrating Divergence with Volume ConfirmationIdentifying True DivergenceTrue divergence appears when price creates a new high or low while

Integrating Divergence with Volume ConfirmationIdentifying True DivergenceTrue divergence appears when price creates a new high or low while the chosen oscillator-such as RSI, MACD, or Stochastic-fails to follow suit. The key is a measurable discrepancy: price makes a higher high (HH) but the oscillator makes a lower high (LH), or price makes a lower low (LL) while the oscillator makes a higher low (HL). This mismatch signals a weakening of the prevailing momentum and a potential reversal. To avoid false signals, confirm that the price extreme is clear on the chart (no overlapping wicks) and that the oscillator’s divergence line...