In technical analysis, divergence refers to a situation where the price of an asset and an indicator that is based on that price is moving in opposite directions. It can be a signal that a trend reversal may be imminent, and it is often used by traders to identify potential entry or exit points in the market.There are two types of divergence: bullish and bearish. A bullish divergence occurs when the price of an asset is making lower lows, but the indicator is making higher lows. This can indicate that the price may soon reverse and start moving higher. Bearish divergence, on the other hand, occurs when the price of an asset is making higher highs, but the indicator is making lower highs. This can indicate that the price may soon reverse and start moving lower.Divergence can occur with a variety of technical indicators, such as the Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), and the Stochastic Oscillator. Traders often use divergence as a confirmation signal for their trades, and it can be a useful tool for identifying potential trend reversals in the market.

Divergence in forex refers to a situation where the price of a currency pair moves in the opposite direction of an indicator or technical analysis tool. It is a potential signal for a trend reversal or continuation.

Divergence is a concept used in technical analysis that refers to a disagreement between two different indicators or between an indicator and price action. Divergence can be used to identify potential trend reversals, as it often suggests that the current trend is losing momentum. Traders can use divergence to gain insights into the underlying forces driving the market and make more informed trading decisions.Divergence can occur with a variety of indicators, including oscillators like the Relative Strength Index (RSI) or the Moving Average Convergence Divergence (MACD). When the indicator is moving in the opposite direction to price action, this is a sign of divergence. For example, if the price of a currency pair is making new highs, but the RSI is not, this suggests that the trend may be losing steam and could soon reverse.

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Question - Forex Forexqna Trading

What is divergence?

6 Answer

Charles Farley

Answered 1 year, 7 months ago

Divergence refers to when the price of a currency pair moves in one direction while the trend indicator is moving in the opposite direction. With divergence, there can be positive and negative signals.When divergence occurs it is because there are no clear directional trends and traders use divergence as a signal to take action, usually by taking on positions with each side of the trade.Continue reading to explore what divergence is, what indicators to use when looking for divergence, and how forex traders utilize it for their trades in the market.Divergence refers to when the price of a currency pair moves in one direction while the trend indicator …

What is divergence?

6 Answer

6 Answer

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