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Divergence Trading? Is this part of great systems trading?

Michael Covel (March 28, 2005)

A question arrived recently:

A fellow traders has told me "the trend is your friend and you should trade in the direction of the trend, unless there is a major divergence. If there is a major divergence, the divergece is your BETTER friend and probability favours trades (in the next ...

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    The basic trading strategy that all trend followers try to systematize is to "cut losses" and "let profits run". (Read more)

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