Two synced panels — price and VCO
Price pushes lower but VCO doesn't — that's a bullish divergence. The entry is confirmed only when the oscillator exits the OS zone inside your Discount zone.
Discount / OS — cheap
Premium / OB — expensive
VCO line
divergence
How to read it — a confirmation layer, not the whole system:
- Read structure and zones from price — Discount at the bottom, Premium at the top.
- VCO confirms the timing : go long when it exits the OS zone in Discount.
- Price and oscillator pulling apart = divergence — stronger than a plain cross.