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Two Roads Diverged: Trading DivergencesWhat you see on the surface is often deceptive, in trading, as well as in life. A trend may appear strong, while below the surface it may be weak and ready to reverse.This book will teach you to use indicators for measuring the internal power of trends. When they confirm an uptrend, they tell you it’s OK to hold or add to long positions. At other times they signal that the trend is suspect: it is better to exit, take profits, and even consider switching from long to short or vice versa.A divergence is a disagreement between the patterns of indicators and prices. You’ll find bullish divergences near market bottoms and bearish divergences near market tops. Some traders use these important terms loosely; this book will make them very clear by guiding you through several Reader Exercises. It will show you how to ride price trends with greater confidence and recognize upcoming reversals before they hit the crowd.CONTENTSHow to Work with This BookFree Updates & the Honor CodeReview of ToolsA Bullish Divergence: A Basic DefinitionWhat is NOT a Bullish DivergenceA Bearish Divergence: A Basic DefinitionWhat is NOT a Bearish DivergenceReader ExercisesEntries, Stops, and Profit TargetsAdditional Points on DivergencesDivergences in Other IndicatorsDivergences in Multiple TimeframesScanning for DivergencesThe Next Step: MACD Semi-AutomaticConclusionThanksSourcesAbout the AuthorAlexander Elder, M.D. is a professional trader based in New York. He is the author of several best-selling books: Trading for a Living, Come into My Trading Room, Entries & Exits, and The New Sell and Sell Short (all with Study Guides). Dr. Elder taught psychiatry at Columbia University. His experience provides him with unique insight into the psychology of trading. Dr. Elder is a sought-after speaker at worldwide conferences. He is a co-director of SpikeTrade, a website for traders.