My most recent trade was based on divergence — one of the most reliable signals in my toolbox. While an altcoin was making new highs, the RSI on the 1-hour chart was dropping, signaling bearish divergence. I didn’t rush. I waited for the price to form a lower high, confirming the potential reversal. Then I entered a short with a tight stop above the recent high. The drop was quick and sharp, and I exited at key support. Divergence setups don’t appear every day, but when they do, they often provide excellent entries with great risk-reward. I learned to trust the signal only when it aligns with price structure, not just the indicators alone. Combining divergence with candle confirmation improves accuracy. This trade reminded me that technical patterns, when used with patience, can give an edge that beats emotional trading any day.
