Divergent bars help a trader identify a potential shift in the current price trend. Divergent bars are an effective technical tool for futures, options, and stock traders using any timeframe.
A divergent bar is defined as the following:
1. A potential shift from a bullish trend to a bearish trend is evidenced by the current price bar showing a higher high...
Screenshots will be better than words:
I only trade tops & bottoms (accumulation & distribution, supply & demand), and I select good ones.
The "rectangle" type is my favorite.
"Continuation flag" they said. I always go opposite.
Use other filters, the price action pattern is just here to pull the trigger. Use stop losses.