Community Forex Questions
What does forex divergence tell you?
Forex divergence is the comparison of price action and the movement of a specific indicator (most commonly - an oscillator).
Generally, if the price is making higher highs, the oscillator should follow suit by making higher highs as well. If the price is making lower lows, the oscillator should follow suit by making lower lows as well.
If this does not happen, it indicates that the price and the oscillator are diverging.
Generally, if the price is making higher highs, the oscillator should follow suit by making higher highs as well. If the price is making lower lows, the oscillator should follow suit by making lower lows as well.
If this does not happen, it indicates that the price and the oscillator are diverging.
Oct 31, 2022 05:32