I've just noticed that many traders still use straightforward indicators to find reversal points, which often lead to mistakes when the market enters a strong trend. In fact, there are much better ways to use indicators to identify entry points more accurately—that is, by looking at Divergence.



I see that many people may not realize that the RSI we're familiar with isn't best used with the standard 70 and 30 levels. The problem is, when the market is really strong, RSI can stay above 70 for a long time. So, selling immediately when you see it overbought might cause you to miss out. But if we look at RSI Divergence instead—that is, comparing the strength of the price increase with the strength of RSI—if the price keeps rising but RSI weakens, that's a fairly reliable signal that a reversal is coming.

The same applies to MACD. Not just looking at the MACD crossing the zero line, but also observing the Histogram trend. If the price hits new highs but the Histogram doesn't reach new highs correspondingly, that's Bearish Divergence indicating the uptrend is weakening. OBV works similarly: if the price continues downward but buying volume shows an increasing trend, it's a sign that buyers are stepping in.

What I want to point out is that effective indicator-based entry signals require more than just looking at raw values; you need to compare and identify conflicts between price and momentum. That’s the real secret that professional traders use, which differs from random trading.

If you want to practice this method to become proficient, I recommend trying it on a demo account first because it’s safe and you don’t risk real money. Try applying RSI Divergence, MACD Divergence, and OBV Divergence in your trading system. Gradually adjust them to fit your trading style, and once you feel confident, you can start using them in live trading.
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