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You can see that each of the divergences is divided into bearish and bullish (negative and positive).  for the reversal of the trend, while other types of divergence (hidden and extended) speak of its continuation of the trend, which is why it is also called inverse. Many are still confused with the concept of convergence and divergence. . This word comes from Latin. Divergere, which translates as “to disagree, to disagree.” In our case, it means any discrepancy in the dynamics of the price and indicator. Convergence is the antipode of divergence, it comes from the word Convergo, which means “to gather.” Therefore, convergence refers to a special case of divergence, when the vectors of the price chart and the indicator become closer.

Classic divergence It is a strong reversal signal. LiteFinance: What is Forex Divergence?  Divergence and convergence: theory and practice of application |  Litefinance To determine the bullish  Peru Mobile Number List divergence , it is necessary to look at the minimum price points and the indicator used. See the example on the left in the table. LiteFinance: What is Forex Divergence?  Divergence and convergence: theory and practice of application |  Litefinance The low prices are connected by the blue line, the image above shows new higher values. At the same time, MACD lows are lower.



Thus, we have a hidden bullish divergence, which signals the continuation of the trend. To identify the hidden bearish divergence, we look at the candle peaks. The price when moving down forms lower peaks, and the MACD a higher high. The hidden bearish type of deviation is formed in downtrends, and indicates a false reversal and a high probability of continuing the downward movement. See the example on the right in the table. LiteFinance: What is Forex Divergence?  Divergence and convergence: theory and practice of application |  Litefinance The chart shows an example of such divergence. You can see how the price highs are falling each time, while the MACD peaks are growing. As a result, the rollback never occurred.