What is market regime?Market Regime
The broad market environment, such as trending, ranging, high or low volatility; the same indicator can work in completely opposite ways in different regimes.
Learn “market regime” in an animated lesson
- Oscillators & MomentumDivergence
Price makes a new high but the indicator doesn't. Divergence is often an early warning that a trend is tiring, but it needs price to confirm.
- Indicators in Practice & BacktestingLag and False Signals
Every indicator based on past prices lags, and in a ranging market the signals will whipsaw you again and again.
Related terms
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Go to “Divergence”