▌ACADEMY://sentiment-basics · lesson 3/5

Sentiment vs Price: Spotting Divergence

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When the crowd and the tape disagree

1/5

A divergence is sentiment and price pointing in different directions. Two flavours:

Bullish chatter, falling price: the crowd is buying the dip with its mouth. The tape is not convinced.
Bearish chatter, rising price: the crowd hates it and it keeps going up anyway.

Educational content, not financial advice. Charts in lessons use made-up data.

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