🟢 The Psychology of trading exaggerated divergences: How traders see differences that may not exist
Exaggerated divergences are a term used to describe a situation where the price of an asset and its technical indicators diverge significantly.
exaggerated divergences can be a warning sign that a market correction is imminent, but they can also be a false signal. Investors should be cautious when interpreting them, and should focus on the underlying fundamentals of the asset they are trading. By doing so, investors can reduce their risk and increase their chances of success in volatile markets.
