I wanted to start this thread as i think it may give us a few trading ideas. I know many trade exclusively the concept of divergence so who knows maybe we will learn something if we collaborate and share our perspective.
I'd like the focus of this thread to be on the anticipation aspect although the quality aspect of a divergence can be discussed as well. At what point, should we begin to look for a divergence and what can help us anticipate ahead of time a potential divergence might form at that point.
The reasons for anticipating a divergence are twofold: to place a pending order ahead of time instead of chasing price and lower our risk.