Def: Divergence occures when the price of a pair moves in one direction while the trend indicator is moving in the opposite direction.
Example : On this DollarCAD chart,
The price is clearly going down, while the indicator clearly goes up.
This indicatates indecision in the market movements. Until these 2 moves together it will be a confirmation of a up/down trend.
Hope this little education helps unpack divergence.
Cheers and happy tarding !!!
Example : On this DollarCAD chart,
The price is clearly going down, while the indicator clearly goes up.
This indicatates indecision in the market movements. Until these 2 moves together it will be a confirmation of a up/down trend.
Hope this little education helps unpack divergence.
Cheers and happy tarding !!!
