“Divergence End” is a well-known high-probability model in the trading community (especially common in Chan Theory).

Since you want to understand this model, why not I spend 1 minute explaining its underlying logic and practical application?
🎯 What is “Divergence End”?
Simply put, divergence is “exhaustion of momentum”.
Bullish divergence: Price makes a new high, but the upward momentum (such as MACD histogram area, trading volume) fails to keep up with the previous rally. This indicates the bulls are running out of steam, and the trend is about to reverse downward.
Bearish divergence: Price makes a new low, but the downward momentum clearly weakens. This suggests the bears are exhausted, and the trend is about to reverse upward.
💡 Core mantra: How to use it to catch tops and bottoms?
The essence of this model lies in “comparison” and “confirmation”:
Observe the trend: First confirm that the current market is in a clear upward or downward trend.
Identify divergence: Compare the momentum of two adjacent segments moving in the same direction. If the price hits a new high/low but the indicator (like MACD, RSI) does not reach a new high/low, divergence is formed.
Wait for the end (key!): Divergence does not mean an immediate reversal, just a warning! You must wait until the price breaks the structure that destroys the original trend (for example, in an uptrend, breaking below the last significant support, or showing strong reversal candlesticks like engulfing or doji), which then confirms the “end” and becomes a high-probability entry point.
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