Technical toolkit
The idea
A chart pattern organizes repeated price behaviour into a testable description. Divergence occurs when price and a chosen indicator do not make matching extremes. Neither provides a complete entry, invalidation or sizing rule. Define those separately and record failed examples rather than studying only attractive winners.
A worked example
A higher price high with a lower momentum high is divergence, but the trend can continue before any reversal develops.
Try it yourself
Write objective rules for one pattern: lookback, trigger, invalidation, time limit and no-trade conditions.
A mistake to avoid
Drawing only patterns that succeeded and ignoring the ones that failed.
