Critics have tried to dispel divergenceanalysis, but these examples show that when executed properly, reliable signals are generated that can help determine market tops and bottoms.
Those analysts who are only looking at daily divergences conclude that divergenceanalysis does not work because they observe a series of daily divergences within an intermediate-term trend.
In the past few years, there have been a number of articles about divergenceanalysis that I feel do not allow it to be judged correctly as a technical tool.
Several days after the low (September 20) I became much more defensive as the weekly relative performance or RS analysis had formed a negative divergence and the daily OBV was below its WMA (point 7).
Swenlin, who is known for careful and detailed analysis, sees a significant positive divergence on his momentum indicator between this recent July low and the June low.