Theres 2 types of divergence, Type 1, classic higher high but not seeing higher high in the momentum Type 2, trend following hidden divergence, if you have a higher low but the stochastic cycles down and makes a lower low, thats trend following in nature and gives a good entry for bullish markets
ICT likes to see that happen when we’re looking for higher prices, while retail looks at the bearish divergence on the top
Banks are not looking at what indicators are doing, but theyre looking at where the stops are
Bearish divergence for retail and we expect higher prices still so we buy
Do the opposite of retail
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