DIVERGENCE IS CONVERGENCE
Bitcoin / Dollar BITFINEX:BTCUSD
✅There are several main ways to work on the stock exchange in trading. , for example, is recognized as effective and is used by almost all market participants. But the disputes about indicator analysis do not stop for a long time. Some traders talk about the backwardness of the method because trading operations are performed faster every day. Others build successful strategies based on one or more indicators. Still, others combine two methods to find successful market entries and get an effective tool for making money on the stock exchange. Divergence is often used for this, which will be discussed below.
🔴What is divergence
Divergence is one of the strongest signals that indicator analysis can demonstrate. To obtain it, one of the possible oscillators is used. The divergence conditions are that the curve of the price chart diverges from the indicator data. For example, with an uptrend, the price continues to move up, while the oscillator shows a decrease in the interest of the main participants of the trading system. In this case, we should expect a change in the direction of the price.
Such a change does not always mean a new trend. Sometimes it can be a normal correction or price fluctuation. To determine the exact forecast, the methods of of divergence are used. The result largely depends on the timeframe, sometimes on the levels.
⚠️There is also an opposite process — convergence when the price of an asset decreases, and the indicator shows growth. This process is called convergence. Both signals are used in the Forex market, but they are known collectively as "divergence".
There are and divergences in the Forex market. In addition, divergence is divided into three types:
❗️To successfully trade currency pairs on Forex, taking into account divergence, you need to learn how to correctly read information from the market. A combination of indicators and fundamentals of will help in this. Divergence plays an important role, so its indicators cannot be ignored.
❤️Please, support our work with like & comment!❤️
from TradingView Ideas https://ift.tt/3BQqMS3