It is also a moderately strong reversal signal, as I mentioned earlier. (fxdayjob.com)
If you're extra conservative and patient, you can even wait for divergence to occur on multiple indicators at once, which is a really strong reversal signal. (fxdayjob.com)
As I've noted, the best indication of counter-trend rallies in bear markets appears to be strong reversals in breadth momentum in a falling interest rate environment. (hussmanfunds.com)