Community Forex Questions
What is divergence?
Divergence is effective and help the trader to get good results and make money from the market, the trader can trade with it and he will find that he will get good money with it, but the trader should practice on it first to know when to enter in the proper time and how to find the strong signals of it as this will incraese the profits and will decrease the risk.
In forex , divergence refers to a scenario where the price movement of a currency pair and an oscillator indicator move in opposite directions. It indicates a potential shift in momentum and often serves as a signal for a potential reversal or continuation of a trend. Traders commonly use oscillators like the Relative Strength Index (RSI) or the Moving Average Convergence Divergence (MACD) to identify divergence. Bullish divergence occurs when the price makes lower lows while the oscillator forms higher lows, suggesting a possible upward price reversal. Conversely, bearish divergence occurs when the price forms higher highs while the oscillator forms lower highs.
Sep 02, 2021 21:46