The common words used in ALL chart analysis text materials (aka Technical Analysis) is the word DIVERGENCE. It is simply used to describe both price trend and indicator are not in same direction.
Eg.
The are different types of Divergences
To simplify, anything that CANNOT be considered to be in the same direction between price and indicators, we classify them as DIVERGENCE.
While price trend reversal ends MOST of the time with some sort of divergence (refer to the above Macd Divergence table), there are situation and they do exist occasionally that price trend reversal happens without ANY sort of Price - Indicator divergence!!!!!
Once you can distill and summarize all the different traits and conditions for the situations, chart analysis become easier and less confusing.
The biggest challenge for me internally and mentally is the strong desire to be perfect and this "urge" often lead to wrong or bad choices due to premature trigger before confirmation.
Sometime a deep breath is needed and calmness for a confirmed change is not going to flip flop change immediately
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