Divergence is a leading indicator unlike most other indicators that are lagging.
There are 2 types of divergences: 1) Regular and 2)Irregular.
Irregular divergence is also known as Hidden Divergence.
Regular Divergence signals a trend change or a retracement.
Whereas Hidden Divergence signals trend continuation.
If you want to learn more about divergences, you should read this post on Trading Divergences.
Divergence trading is an art.
Stochastic is a good oscillator for divergence trading.
You can also use other oscillators like MACD, RSI, OSMA for divergence trading.
There are some tricks that can make you a successful divergence trader.
The most important is of course never forget risk management.
