How To Trade Divergences On H1, H4 And D1 Timeframes?

3 January 2017, 13:56
Ahmad Hassam

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.

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