What is Divergence in Forex Trading ? Divergence for beginners (2020)

What is Divergence? What is Divergence in forex trading?

What is Divergence ? Guide to Divergence –

The meaning of the word divergence is to move apart. In forex what divergence means is, when the price and the oscillator indicator does not agree with each other or when they move apart, then it is said to be a divergence.

A divergence is found by comparing the price action with the oscillator indicator.

Consider the price action is moving down and creating continuous Lower Lows. So, as the indicator is developed to follow the price action, the indicator should also create Lower Low. But in the case of divergence, the indicator does not agree with the price and creates Higher Low.

What the indicator is trying to tell us is, that something in the market is not right and hence we can expect a reversal.

Divergence for beginners , Divergence explained in forex trading

Advance Forex Trading Strategies –

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