Forex Trading Course (Part 4)

forex trading great thing about divergences is that you can use them as a leading indicator, and after some practice it’s not too difficult to spot.

Price and momentum normally move hand in hand like Hansel and Gretel, Ryu and Ken, Batman and Robin, Jay Z and Beyonce, Serena and Venus Williams, salt and pepper…You get the point.

If price is making higher highs, the oscillator should also be making higher highs. If price is making lower lows,

cillator should also be making lthey are NOT, that means price and the oscillator are diverging from each other. And that’s why it’s called “divergence.”

Divergence trading is an awesome tool to have in your toolbox because divergences signal to you that something

fishy is going on and that you should pay closer attention.Using divergence trading can be useful in spotting a weakening trend or reversal in momentum.

Sometimes you can even use it as a signal for a trend to continue!There are TWO types of divergence:RegularHidden

In this grade, we will teach you how to spot these divergences and how to trade them. We’ll even have a sweet surprise for you at the end.

trade in fress mind divergence is used as a possible sign for a trend revers price is making lower lows (LL), but the oscillator is making higher lows (HL), this is considered to be regular bullish divergence.

This normally occurs at the end of a down trend. After establishingr.elow is an image that portrays regular bullish divergence.

forum a second bottom, if the oscillator fails to make a new low, it is likely that the price will rise, as price and momentum are normally expected to move in line with each othe

now trading is free, if the price is making a higher high (HH), but the oscillator is lower high (LH), then you have regular bearish divergence.

then you can probably expect price to reverse and drop.In the image below, we see that price reverses after making the second top.

in the stok market This type of divergence can be found in an uptrend. After price makes that second high, if the oscillator makes a lower high

in the forex As you can see from the images above, the regular divergence is best used when trying to pick tops and bottoms.