9. A volume-oriented positioning strategy is achieved by
A. Reducing divergence.
B. Increasing complexity
C. Reducing complexity.
D. Increasing divergence
Answers
Answer:
Option d is the answer.
Explanation:
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Answer:
Explanation:
Definition of divergence:
Divergence occurs when an asset's price moves in the opposite direction from other data or from a technical signal, such an oscillator. Divergence signals that the price trend may be waning and, in extreme situations, may even result in a price reversal.
Types of divergence:
Divergence can be both beneficial and bad. Positive divergence suggests that the asset's price may rise in the future. A move lower in the asset is indicated by negative divergence.
- The price of an asset can diverge from practically any technical or fundamental signal or piece of data. Divergence, however, is frequently utilised by technical traders when the market is going against a technical indication.
- Positive divergence suggests that price may shortly begin going higher. It happens when a technical indicator is rising or giving bullish signs while the price is falling.
- Future price reductions are predicted by negative divergence. It happens when a technical indicator is declining or giving off bearish signs while the price is rising.
- Divergence shouldn't be relied upon solely because it doesn't offer reliable trade signals. Long periods of divergence can pass without a price reversal taking place.
- Divergence is only present on some significant price reversals, not all of them.
Definition of complexity:
When a system or model's components interact in numerous ways and adhere to local laws, nonlinearity, unpredictability, collective dynamics, hierarchy, and emergence result. This behaviour is characterized as complex.
The word is typically used to describe something that has many pieces and various ways in which those parts interact with one another, leading to a higher degree of emergence than the sum of its parts. The primary objective of complex systems theory is to investigate these intricate relationships at various scales.
A volume-oriented positioning strategy is achieved by Increasing divergence.
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