When entering based on bullish divergence, investors need to be aware that this is considered a left-side buying point, commonly referred to as a bottom-fishing buying point. Prudent investors should wait until the Bollinger Bands open upwards and retrace to the middle band before considering entry, which is known as a right-side buying point. Regarding left-side and right-side trading.
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Divergence buying points are not foolproof, and during a prolonged downtrend, bullish divergence may occur multiple times; in such cases, a larger timeframe should be used for analysis.
In other words, caution should be exercised when using bullish divergence for left-side trading during a major bear market, and stop-losses should be used judiciously.