forex trading course (part 4)

You are looking for an area where price will stop and reverhe oscillators signal to us that momentum is starting to shift and even though price has made
We’ll explain more in the next section. Read on!

brothers higher high (or lower low), chances are that it won’t be sustaineee the regular bearish divergence at work through this GBP/USD trade handpicked by Pipcrawler!

get all of that? Pretty simplehat you’ve got a hold on regular divergence, it’s time to move and learn about the second type of divergence – hidden divergence.

it’s not super concealed like the Chamber of Secrets and it’s not that tough to spot. The reason it’s called “hidden” is because it’s hiding inside the current trend.

forex Divergences not only signal a potential trend reversal; they can also be used as a possible sign for a trend continuation.

Always remember, the trend is your friend, so whenever you can get a signal that the trend will continue, then good for you!

Hidden bullish divergence happens when price is making a higher low (HL), but the oscillator is showing a lower low (LL).

This can be seen when the pair is in an uptrend. Once price makes a higher low, look and see if the oscillator does the same. If it doesn’t and m

Lastly, we’ve got hidden bearish divergence. This occurs when price makes a lower high (LH), but the oscillator is making a higher high (HH).

in the fx news guessed that this occurs in a downtrend. When you see hidden bearish divergence, chances are that the pair will continue to shoot lower and continue the downtrend.

If you’re a trend follower, then you should dedicate some time to spot some hidden divergence.If you do happen to spot it, it can help you jump in the trend early.

Okay, now you know about both regular and hidden divergence.We hope you got it all down pat. Keep in mind that regular divergences are possible signals

for trend reversals while hidden divergences signal trend continuation.In the next lesson we’ll show you some real-world examples of when divergences existed and how you could have traded them.

Now it’s time to put those Jedi divergence mind tricks to work and force the markets to give you some pips!Here we’ll show you some examples of when there was divergence

between price and oscillator movements.First up, let’s take a look at regular divergence. Below is a daily chart of the market.