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Technicals

Positive divergence

Positive divergence is a crucial concept in finance. It refers to a situation where a price index is simultaneously showing a lower bottom while a technical indicator is displaying a higher bottom. This signal is significant because it indicates a potential reversal in the market trend. As a knowledgeable professor, it is essential to understand the concept of positive divergence and its implications in the world of finance. Let us delve deeper into this topic to gain a better understanding.
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