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| For about a month, AOL sketched out higher prices within a tight congestion pattern. But On Balance Volume (OBV) moved downward during the same period, suggesting that investors were jumping ship while prices rose. An indicator that trends in the opposite direction to price signals divergence. Convergence prints when an indicator moves in the same direction as price. Since price can be manipulated over short periods of time, underlying indicators often tell the real story about whether a trend will continue or reverse. |
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