Divergence Analysis
Figure 9.21 Standard Slope Divergence in the Absence of Peaks and Troughs.In Figure 9.22, we observe peak and trough oscillations at a lower wave de-
gree giving rise to a trend at a higher wave degree, that is, the current larger
trend. If the current larger trend itself does not also oscillate, then it will not be
possible to employ peak and trough analysis to the next larger trend in order to
determine its direction. Furthermore, performing peak and trough analysis on the
lower wave degree oscillations will not accurately describe the action of the next
larger trend. Therefore slope analysis is employed to determine the direction of
the next larger trend.Figure 9.22 The Larger Trend Is Devoid of Peaks or Troughs.