Divergence Bias by Giorgos Siligardos
Did you know that classical momentum and trend indicators
have a bias in forming divergences?
One of the most common, elementary concepts
in technical analysis is that of momentum.
Most books on technical analysis have a
reference, a section, or a few paragraphs
devoted to it; however, no work has been published discussing
whether the various momentum indicators incorporate a
bias in forming divergences from the price. Until now.