- Trend Reversal Signals – Convergence
Convergence is a disparity between the price chart and the indicator, where the chart is moving downwards and the oscillator’s line is moving upwards.
In other words, they are moving towards each other.
If a convergence appears between the chart and the Detrended Price Oscillator, a trend reversal is possible and the price will begin to rise.
Note: convergence is a supplemental signal. It does not allow one to accurately determine the entry point.
We do not recommend opening trades using only this strategy.