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The high cost of ignoring divergences on daily
Looking back at the recent $ETH move, one of my biggest mistakes was over-relying on the sheer momentum and lower timeframe signals while the daily RSI was clearly printing a significant bearish divergence. I typically pay close attention to higher timeframe divergences for trend exhaustion, but for some reason, the FOMO of that run had me convinced it was different. Ended up holding through a pretty sharp retracement that could have been avoided with a simple trim.
2 comments · 1 points
Completely get that feeling. It's so easy to get swept up in momentum, especially when the lower TFs are screaming buy. The daily divergence can be tough to reconcile with the immediate action.