How to Use a Trading Divergence Strategy
Well, this is the time to use the powerful tool that we call TRADING DIVERGENCE to make a profit in the forex market.
The following is an example of the application of the regular divergence forex trading strategy (the difference between price movements and oscillators) in the chart of USD / CHF Time Frame Daily currency pair price movements.
By looking at the chart of USD / CHF price movements above it can be said that the price is experiencing a downward trend and there is a sign or signal that the decline will end.
When prices form Lower Low (LL) and an oscillator, in this case using Stochastic, forming Higher Low (HL) it can be possible that the price will experience a reversal (trend reversal). And this is the right time to open a BUY (LONG) position against the currency pair.
If you believe and open a BUY position on the currency pair then you can be sure that you will definitely get a huge profit. And you are not in vain studying the Regular Divergence Bullish signal that occurs because of the difference in direction between price movements with this oscillator.
And besides using this strategy you can also pay attention to other key signals as well as the formation of a twezzer bottom at the end of the price movement above.
Even though you believe that this divergence strategy is a very reliable strategy for determining the direction of movement of a reversal or continuation currency pair we still have to pay attention to the other signals so that we are stronger in confidence in this tool.
Okay, let’s continue the example of using hidden divergence trading strategies in the chart of price movements of USD / CHF Time Frame Daily currency pairs.
As seen in the chart above, the price is in a downtrend and forms Lower High (LH) and Stochastic forms Higher High (HH) at the end of its journey. Now the question is, does the price continue its downtrend or vice versa.
After we learn about several types of trading divergence, we know that this signal is a Bearish Hidden Divergence and shows us that the price will continue its downtrend movement. And this is the right time to open a SELL (SHORT) position.
Hmmm if you really decide to open a SELL (SHORT) position when a bearish hidden divergence signal is formed in the price movement above then it is certain that you will get a huge profit because the price continues its downtrend journey.
How is it bro? make it easy to learn about this Trading Divergence Strategy! even so do not go anywhere first because there are still other lessons that are not less important to note.