Divergences

[Rambo35]

There are two types of divergences, a positive divergence and a negative divergence. The majority views a positive divergence as a buying opportunity and a negative divergence as a selling opportunity. A positive divergence occurs when the price of an asset keeps declining and making lower lows while the technical indicator makes a higher low; a negative divergence occurs when the price of an asset makes a higher high while the technical indicator makes a lower high.

There are some technicians who view a divergence as a continuation signal, which camp do you belong to?

I view a positive divergence as a buying signal and a negative divergence as a selling signal but only together with other aspects of technical analysis and not stand alone.

 

[dkami]

Regular divergence is a reversal,Hidden divergence is a continuation in my book!

 

[maxking]

what is regulation and hidden divergences.

 

[Pharaoh]

Regulation divergence follows the laws of physics. Hidden divergences are often found in an old box in the attic

I think you might want to compare regular and hidden divergences. Start here:

https://www.forexpeacearmy.com/forex-books/132/chapter-18-part-i-divergence-intro

 

[Ken Smith]

Whether you are a divergence trader or any other strategy, the key thing is you learn it throughly. Learn how to modify it according to the market change as market doesn't behave in the same way all the way. And same set up doesn't work for every currency pair as well.

 

[Morning1234]

You should look at the divergences yourself, find them on the chart and test them on your trading instrument. Then you will know everything about them.

 

[Mneri]

In general, it is a good guideline for decision-making, because it is a classic indicator of what will happen to the price in the near future. So yes, I can probably recommend it, but be careful, first try it on a demo....

 

[Malsa]

I do not pay any attention to it. I do not know how to work with it.

 

[Fenrilrajas]

Whatever principles your trading strategy is based on, you will definitely need to check how it works on your demo account. You can't be 100% sure of anything in trading. You need to check and double-check everything, it's the only way you can count on success in this business

 

[ele020]

In general, it is a good guideline for decision-making, because it is a classic indicator of what will happen to the price in the near future. So yes, I can probably recommend it, but be careful, first try it on a demo....

Yes I agree. But I would like to add more about divergence here,
Divergence is when the price of an asset is moving in the opposite direction of a technical indicator. Divergence warns us that the current price of an asset may be weakening. There are two types of divergence --

Positive divergence - A move higher in the price than expected - we can take it as buying opportunity

Negative divergence - A move lower in the asset than expected - we can take it as a selling opportunity.