Trading Divergences in Forex
Learn what divergence trading is and how comparing price action with indicators like RSI and MACD can help you spot potential reversals and trend continuations.
Learn what divergence trading is and how comparing price action with indicators like RSI and MACD can help you spot potential reversals and trend continuations.
Learn what regular bullish and bearish divergences are, how to spot them on your charts, and how traders use them to identify potential trend reversals in forex.
Learn what hidden bullish and bearish divergences are, how they differ from regular divergences, and how traders use them to spot trend continuation signals in forex.
See real chart examples of how to trade regular and hidden divergences in forex, including entry thinking, confirmation signals, and what to watch for before placing a trade.
Learn three practical techniques to avoid entering divergence trades too early, including waiting for indicator crossovers, overbought/oversold exits, and drawing trend lines on your oscillator.
Before you start looking for potential divergences when trading forex, here are nine cool rules for trading divergences.
Quick-reference cheat sheet for all four types of divergences in forex: regular bullish, regular bearish, hidden bullish, and hidden bearish, with descriptions, chart examples, and memory tricks.
Learn why divergences should never be used as standalone trade signals, how to combine them with confirmation tools, and how to selectively choose the setups worth trading.
Divergence is a concept in technical analysis that describes when an asset’s price is moving in the opposite direction of a technical indicator.
Test your knowledge of divergence trading with this quiz covering regular and hidden divergences, trading rules, confirmation techniques, and common mistakes.
Let’s start the week off with a look at these swing setups on AUD/CHF, CAD/JPY, and silver. Better keep these long-term levels on your radar!
I’m seeing a potential bounce on this AAVE/USD short-term chart and some positive developments to boot!
Check out these higher lows and lower highs on EUR/USD! And is that a bullish divergence I’m seeing, too?
GBP/NZD can’t seem to get past the 1.9650 zone! Will the pair get rejected and see bearish pressure at the level?
Cable’s short-term uptrend is looking pretty solid right now! Is it time to go with the flow with this bullish divergence forming?
Hi everyone: See screen capture below from a Renko chart: How would you trade this or interpret the divergence shown on the chart? Because price has been in a general downtrend, would you go with the bearish diverge…
Hi There, Newbie here, I’m just working through the school of Pipsology and reached the Divergence module, where it recommends going to look at some charts to look for Divergences. I choose GBPUSD as the first to an…
Forex Scalp Retracement Trading System Long Entry: The Closing price must be above 55EMA on The Hourly Chart; The closing hourly candelstick must be a bullish candelstick; MACD bar mus show a positive divergence or s…
Hello Traders, I’m a new trader and I have a strategy that I want to to share with you to have an opinion from experienced trader, and in case some of you will help coding the indicators required. Basically Correlated …
Here are the past winners of Forex Ninja's Best Forex Trading System of the Month: 2011 2011 June: Big E Trading by johnnykanoo 2011 July: MACD(addy) Divergence System by jenesaisquoi 2011 August: Breakout System X-tre…
Let’s start this brand new trading month with a look at this steady downtrend on gold prices. Can resistance hold again?
Brent crude oil prices are down to the bottom of a short-term rising channel. Will we see a bounce or a break right here?
1.0800 Is a strong psychological demand/support zone with 1.1000 being the target zone Short-term MACD bounced off Longer Term - Continuing Divergence Took a trade on the next candle proceeding the engulfing bullish, b…
Guess who's gonna be celebrating tonight! 124.00 held a like a boss and my profit target was hit right before the start of the New York session! Boo yeah!
Hi Everyone, I was reading about Stochastic Oscillators and one of the topics which came up was divergence. It is loosely defined as follows: A divergence occurs when the indicator doesn’t move in-line with price…
what should we do if there is both the hidden and regular divergences at the same time? does the trend continue or does it reverse?
Hey guys! Did you see this double top formation on NZD/USD's daily chart? I'm thinking if I should short below the neckline around .8100. There's a nice bearish divergence, too. But I'm still trying to figure out whether…
Check out this neat confluence on the 4-hour time frame of GBP/USD! Do you think the uptrend is bound to resume soon?
This time, I'm looking at the MACD(addy) Divergence System by jenesaisquoi, another past winner in my Best Forex Trading System Contest.
Crazy Arrow indicator with custom moving average is a divergence and price action indicator developed with divergence and price action approaches. Crazy Arrow is a Forex indicator that guarantees 100% accuracy in forex …
Things may come to those who wait, but only the things left by those who hustle.Abraham Lincoln