Why I Avoid Trading Every Divergence

Divergence is interesting. Trading every divergence is expensive.

Price and CVD can diverge for extended periods without producing an immediate reversal.

A market can continue making higher highs while CVD shows weaker readings. That doesn't necessarily mean the trend is finished.

The problem is entering too early simply because the chart appears to show a warning sign.

I prefer to treat divergence as a reason to pay attention, then wait for additional evidence.

Has price rejected an important level? Has market structure changed? Is there a clear point where the trade idea becomes invalid?

Without those answers, divergence is just an observation—not a complete trading setup.