Trading Divergences
by InvestarIndia
Divergence is where the price of a stock and a set of relevant indicators, e.g., the MACD, stochastic oscillator, RSI, etc… are moving in opposite directions. A divergence happens when price makes higher highs, but the indicator makes a lower high, it implies that “something” is going on that requires your consideration.
There are two kinds of Indicator Divergence: Negative Divergence and Positive Divergence.
Negative divergence happens when the price has a higher high but the indicator fails to do the same, instead it has a lower low.
http://www.investarindia.com/blog/wp...ce-241x300.png
like you need deep pocket on high time frames but not for me
by InvestarIndia
Divergence is where the price of a stock and a set of relevant indicators, e.g., the MACD, stochastic oscillator, RSI, etc… are moving in opposite directions. A divergence happens when price makes higher highs, but the indicator makes a lower high, it implies that “something” is going on that requires your consideration.
There are two kinds of Indicator Divergence: Negative Divergence and Positive Divergence.
Negative divergence happens when the price has a higher high but the indicator fails to do the same, instead it has a lower low.
http://www.investarindia.com/blog/wp...ce-241x300.png
like you need deep pocket on high time frames but not for me