Divergence

Moving Average Convergence Divergence (MACD) is a forex divergence indicator based on the evaluation of a technical indicator's exponential moving average values for 26 and 12 days or 9 days. In divergence forex trading, the MACD histogram in a way to reveal those moments at which price does an upward or downward swing, but MACD .

Jangan repot-repot melihat indikator kecuali SATU dari empat skenario harga yang telah terjadi. While it is true that the contrast between the two peaks on the MACD histogram's lower high was extremely prominent, the action on price was not so much a straightforward higher high as it was just one continuous uptrend. Salam, Seperti biasa,tugas kami memberikan artikel yang straight to the point.

Overview of Convergence and Divergence in Forex

Sep 30,  · Teknik Divergence trading Forex Gold adalah pola yang luar biasa untuk untuk diketahui karena dapat memberikan signal kepada kita bahwa sesuatu yang mencurigakan sedang terjadi.

Some indicators such as MACD or Stochastic have multiple lines all up on each other like teenagers with raging hormones. If you draw a line connecting two highs on price, you MUST draw a line connecting the two highs on the indicator as well. Ditto for lows also. If you draw a line connecting two lows on price, you MUST draw a line connecting two lows on the indicator. They have to match! If you spot divergence but the price has already reversed and moved in one direction for some time, the divergence should be considered played out.

You missed the boat this time. Divergence signals tend to be more accurate on the longer time frames. You get less false signals. This means fewer trades but if you structure your trade well, then your profit potential can be huge. Divergences on shorter time frames will occur more frequently but are less reliable.

We advise only look for divergences on 1-hour charts or longer. Other traders use minute charts or even faster. Overall, this situation illustrates the weak upward trend. In those circumstances, the oscillator may either strike lower highs, or reach double or triple tops more often true for range-bound oscillators.

In case of this situation, our divergence forex strategy should be to prepare for opening a short position, as there is a signal of possible downtrend. Classical regular bullish positive divergence assumes that in the conditions of a downtrend, price action achieves lower lows, which is unconfirmed by the oscillator. In this case, we face a weak downward trend. The oscillator may either strike higher lows or achieve double or triple bottoms which more often occurs in range-bound indicators such as RSI.

In this case, our divergence forex system strategy should be to prepare for opening a long position, as there is a signal of possible uptrend. In contrast to classic regular divergence, hidden divergence exists when the oscillator reaches a higher high or lower low, while price action does not do the same. In those circumstances, the market is too weak for the ultimate reversal, and therefore a short-term correction occurs, but thereafter, the prevailing market trend resumes, and thus trend continuation occurs.

Hidden divergence in forex may be either bearish or bullish. Hidden bearish divergence is a divergence trading forex situation in which correction occurs during a downtrend, and the oscillator strikes a lower low, while price action does not do so, remaining in the phase of reaction or consolidation. This indicates a signal that the downtrend is still strong, and it is likely to resume shortly thereafter. In this case, we should either hold or open a short position. Hidden bullish divergence is a trading divergence in forex in which correction takes place during an uptrend, and the oscillator achieves a higher high, while price action does not do so, remaining in the phase of correction or consolidation.

The signal here means that the upward trend is still strong, and it is likely to resume shortly thereafter In this situation, we should either hold or open a long position. Exaggerated divergence is overall similar to classical regular divergence. However, a substantial difference is the fact that the price movement pattern here forms two tops or bottoms, with the respective highs or lows located approximately on the same line. At the same time, the technical indicator shows the respective tops or bottoms in a clearly visible upward or downward direction.

Exaggerated bearish divergence is a divergence in forex is a situation in which price forms two tops approximately on the same line with some really slight deviations possible , while the technical indicator diverges and has its second top at a lower level. In this situation, there is a continued downward trend signal, and the best option for us is either to hold or to open a new short position. Exaggerated bullish divergence occurs when price creates two bottoms on relatively the same line, while the technical indicator diverges and has its second bottom at a higher level.

In this case, we have a continued upward trend signal, and the best choice for us is to hold or open a new long position. A number of different forex divergence indicators may be used in forex divergence trading.

The most common ones of them are the following:. Moving Average Convergence Divergence MACD is a forex divergence indicator based on the evaluation of a technical indicator's exponential moving average values for 26 and 12 days or 9 days. In divergence forex trading, the MACD histogram in a way to reveal those moments at which price does an upward or downward swing, but MACD does not do so.