Elliot Waves Oscillator with Divergence
When using the Elliott Waves Oscillator (EWO) in conjunction with divergence for trading, look for confirmation of trend reversals by identifying discrepancies between the price action and the oscillator's readings. For instance, if the price is making a higher high but the EWO is making a lower high, it indicates potential bearish divergence, suggesting a trend reversal might occur. Conversely, bullish divergence occurs when the price hits a lower low while the EWO makes a higher low, indicating a potential upward reversal. To enhance your trading strategy, combine these signals with other technical indicators, such as moving averages or support and resistance levels, ensuring you have a solid risk management plan in place.
