DIVERGENT BAR The first thing that I must remember is that not every change in market rythem is preceeded by a Divergent bar. I am going to speculate that Divergent bars that appear at the end of an impulse wave 5 should be more interesting than say a Divergent bar that appears at the end of a wave 1. Why? Well, the ends of wave 5's within both impulse and corrective waves are supposedly (if I understand my Elliot Wave Theory correctly) where we can expect to see new trends give birth. The Alligator is beginning to grow hungry and can be expected to start to stir and then begin a new feeding frenzy. The general rythm is one of impulse then corrective and so on. Divergent bars at the ends of Long trend legs seem to have more trading potential than ones that appear at the ends of Shorter trend legs as the Shorter trend may likely be a wave 1 within a perhaps larger wave count and/or corrective move. In this case they may appear near a recent Fractal break and are just a part of a retest of the recent breakout. I don't really want to consider them as tradeable but they can certainly serve as a heads up to watch for the resumtion of the trend. However, having said all that, there is the wave 3 senario that should be considered. Wave 3 can be and hopefully will be a Long (impulse) leg. A Divergence bar at it's ending will lead to a corrective wave 4 which may be a pullback of some depth but not a trend changing wave as the end of a wave 5 should be. I think that by definition pretty well every divergence bar becomes a Fractal point as well, but of course, not every Fractal is going to be a Divergence bar.