Community Forex Questions
What is bullish divergence and how does it work?
Bullish divergences are used to exchange the inversion of a falling pattern into a climbing pattern. They happen when cost cycles make a lower base while a specialized pointer makes a higher low simultaneously. All in all, the marker isn't following the cost down, inferring that the descending pattern is debilitating and losing force, showing that a move higher is possible. Cost cycles have made a lower base in the model above, yet the specialized marker for this situation, the Relative Strength Index (RSI, 6)- has not followed cost down and has framed a higher low. Brokers would see this as a clue that the venders who are driving the market lower are frail, permitting purchasers to take control. Brokers regularly join this investigation with other specialized pointers or cost movement.

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