Top-bottom divergence is a commonly used technical analysis method and is widely used in the stock market and futures market. It refers to the divergence between market prices and certain technical indicators. Divergence occurs when market prices move towards a new high or low, but technical indicators do not follow this trend. This phenomenon is often considered an important sell or buy signal, especially at the end of a trend.

Top-bottom divergence is a method of predicting market trends. When top-bottom divergence occurs, investors can use this signal to adjust their investment strategies. For example, in the event of a top-bottom divergence, investors may consider reducing asset holdings or selling stocks when the market declines to protect their investment returns.

Although top-bottom divergence is a common technical analysis method, it is not absolutely accurate. Divergences between market prices and technical indicators may be temporary rather than signaling a reversal in a long-term trend. Therefore, when using this method, investors should combine other analytical tools and actual experience to make decisions. At the same time, investors should also pay attention to market risks and uncertainties and develop appropriate risk management strategies.