There is no strategy that can give a BUY (LONG) or SELL (SHORT) signal with the right position. . So we can open a BUY position when the price has just risen from the bottom and SELL when the price has just dropped from its peak. Then when we are in a BUY position we know that the price will end the trip. And or when you are sure that prices will continue to decline. Then you can open a position with the right entry to produce maximum profit.
Oh yeah, it turns out the strategy is called DIVERGENCE STRATEGY.
Divergence can be interpreted literally as a difference. So this strategy uses a different direction. Namely from price trends with indicators (eg RSI, MACD, Stochastic, etc.). By using this strategy we can easily see when prices have weakened. So that in the near future there will be a reverse movement. And you can also see that prices will continue to move strongly because there is still a lot of driving energy.
HIDDEN DIVERGENCE and REGULAR DIVERGENCE.
There are two types of divergences, namely HIDDEN DIVERGENCE and REGULAR DIVERGENCE.
This is a glimpse of the meaning of divergence in the price movements of currency pairs. If the price is High, the indicator (oscillator) also shows Height. And when prices are able to form Low. Then the indicator (oscillator) also shows Low. But if prices and indicators (oscillators) show different things, this is called divergence.
What if you are still confused by the explanation of this Divergence! if YES, please follow the next explanation. That is about how to trade forex with a divergence strategy 🙂
A trading system from a combination of divergence strategies and other strategies.
On our website, there is a trading system that is forex4live. This system is made from various combined strategies including divergence. Our programmers have combined algorithms to make it easier for us to read trend directions. By using the trading system from forex4live, you will easily find the direction of the trend. So that you can enter pairs on time and generate profits. This system has been sold since 2011 and has been used by thousands of traders from all over the world.