Momentum Disvergence is modern indicator was designed with complicated mathematic calculation. You will see divergenses appear on both the chart and indicator.
Momentum Divergence Indicator |
Rule of Momentum Divergence
Buy signal: when price bars create a lower low pattern while Momentum Divergence indicator is plotted as higher low at the same moment.Sell signal: when price creates a higher high patterns with Divergence Momentum indicator shows its lower high at the same time.
Exit purpose: when you look for the opposite divergence of your current entry direction.
Momentum Divergence Buy condition |
Momentum Divergence Sell condition |
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