Dollar Australien/Dollar AméricainÉducation
4 TYPES OF DIVERGENCE
There are basically two types of divergence
trend continuation and trend reversal
1. trend reversal there are two types of divergence
a. regular bearish divergence :- price makes higher high and indicator makes lower high
b. regular bullish divergence :- price makes lower low but indicator makes higher low. its time for reversal.
2. in trend continuation there are further two type of divergence :-
a. hidden bearish divergence :-which means when price make lower highs but indicator makes higher high
it is sign of trend continuation .
b. hidden bullish divergence :-which means when price make higher lows but indicator makes lower lows
it is sign of trend continuation.
trend continuation and trend reversal
1. trend reversal there are two types of divergence
a. regular bearish divergence :- price makes higher high and indicator makes lower high
b. regular bullish divergence :- price makes lower low but indicator makes higher low. its time for reversal.
2. in trend continuation there are further two type of divergence :-
a. hidden bearish divergence :-which means when price make lower highs but indicator makes higher high
it is sign of trend continuation .
b. hidden bullish divergence :-which means when price make higher lows but indicator makes lower lows
it is sign of trend continuation.
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