The main application scenarios of divergence in practical operations (sorted by importance)

The Core Application of Divergence in Chan Theory: In one sentence, divergence is the most important, most direct, and most operable “turning signal source” in the Chan Theory system. Almost all high-level, highly certain buy and sell points ultimately depend on divergence at a certain level.

The three types of buy and sell points do not rely on divergence itself, but divergence often serves as a confirmation/addition signal for position adjustment

Practical Priority Levels for Divergence Judgment (from least to most important)

1. Pattern Divergence (most important, highest priority)
   Obvious highs getting lower / lows getting higher, but prices are making new highs / new lows

2. MACD Histogram Area/Height Divergence (second most important, auxiliary confirmation)
   Green/Red bars significantly shorten + area decreases

3. Volume Divergence (reference, but with lower weight)
   Price makes new highs/lows but volume clearly shrinks

4. Other Indicator Divergences (RSI, KDJ, etc.)
   For reference only, with very low weight

Mastering divergence means grasping the sharpest scalpel in Chan Theory.
But remember: Divergence is just a signal; the level + central zone position + current market environment are the ultimate keys to determining position size and stop-loss.