Divergence II - Diving Deeper
Right, we have some technical knowledge under our belt. Let’s dive deeper into the concepts of
divergences.
Theory
Our system with exodus works very simply in alignment and symmetry alongside DXY; Which is our dollar currency index.
So,
When DXY forms a higher high and is bullish, we anticipate that XXXUSD pairs such as GU and EU should then follow and form lower lows.
When price is aligned, and there are no divergences, our system is in sync. The chances of disrupting the vision are little. Smaller chances of a reversal.
See it as that train analogy, where DXY is leading that train. When everything moves correctly, we do not have to worry that price will be decoupled.
When it is not in sync, we begin to be alert.
So, when DXY makes higher highs, we notice how EU makes lower lows.
This is when our system is in sync.

Here you see the example, general direction of how price is in sync.
