All floor notes

21 May 2026

Treat oscillator divergence as a question

How the academy handles price-oscillator splits so they do not become automatic reversal stories.

Open notebook and coffee on a wooden table during study

Divergence is popular because it looks clever on a slide. In class it is treated as unfinished work. Price made a higher high while RSI made a lower high: that is a fact on the sheet. It is not yet a reversal, a target, or a reason to skip volume.

We pair every divergence mark with two follow-up checks. First, is the moving-average stack still orderly in the direction of price? Second, did volume expand or dry up on the last push? If the stack is orderly and volume expanded, the divergence stays on the page as a caution, not as a conclusion.

Students who rush from divergence to a trade story are asked to rewrite the page. The academy’s job is to slow that rush. Practice charts are historical; nobody in the room is managing an account during the drill.