{"id":9697,"date":"2022-10-12T19:56:14","date_gmt":"2022-10-12T19:56:14","guid":{"rendered":"https:\/\/mdr.foobrdigital.com\/?p=9697"},"modified":"2022-10-12T19:56:14","modified_gmt":"2022-10-12T19:56:14","slug":"trading-divergences","status":"publish","type":"post","link":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/2022\/10\/12\/trading-divergences\/","title":{"rendered":"Trading Divergences"},"content":{"rendered":"\n

What if there was a low-risk way to\u00a0sell near the top<\/strong>\u00a0or\u00a0buy near the bottom<\/strong>\u00a0of a\u00a0trend?<\/p>\n\n\n\n

What if you were already in a long position and you could know ahead of time the perfect place to exit instead of watching your unrealized gains, a.k.a your potential Aston Martin down payment or future Christian Louboutin high heels, vanish before your eyes because your trade reverses direction?<\/p>\n\n\n\n

What if you believe a currency pair will continue to fall but would like to short at a better price or a less risky entry?<\/p>\n\n\n\n

Well, guess what? There is a way!<\/p>\n\n\n\n

It\u2019s called divergence trading<\/strong>.<\/p>\n\n\n\n

In a nutshell, divergence can be seen by comparing price action and the movement of an indicator<\/strong>.<\/p>\n\n\n\n

\"Divergence\"<\/figure>\n\n\n\n

It doesn\u2019t really matter what indicator you use.<\/p>\n\n\n\n

You can use RSI<\/a>, MACD<\/a>, Stochastic<\/a>, CCI<\/a>, etc.<\/p>\n\n\n\n

The great thing about divergences is that you can use them as a leading indicator, and after some practice, it\u2019s not too difficult to spot.<\/p>\n\n\n\n

When traded properly, you can be profitable with divergences.<\/p>\n\n\n\n

The best thing about divergences is that you\u2019re usually buying near the bottom or selling near the top<\/strong>.<\/p>\n\n\n\n

This makes the risk on your trades very small relative to your potential reward.<\/p>\n\n\n\n

Cha-ching!<\/p>\n\n\n\n

\"Divergence<\/figure>\n\n\n\n

Trading Divergences<\/h2>\n\n\n\n

Just think \u201chigher highs<\/strong>\u201d and \u201clower lows<\/strong>\u201c.<\/p>\n\n\n\n

Price and momentum normally move hand in hand like avocado and toast, Hansel and Gretel, Ryu and Ken, Batman and Robin, Jay Z and Beyonce, Kobe and Shaq, salt and pepper\u2026You get the point.<\/p>\n\n\n\n

\"Trading<\/figure>\n\n\n\n

If the price is making higher highs<\/strong>, the oscillator should also be making higher highs<\/strong>. If the price is making lower lows<\/strong>, the oscillator should also be making lower lows<\/strong>.<\/p>\n\n\n\n

If they are NOT, that means price and the\u00a0oscillator\u00a0are diverging from each other. And that\u2019s why it\u2019s called \u201cdivergence.\u201d<\/p>\n\n\n\n

Divergence trading is an awesome tool to have in your toolbox because divergences signal to you that something fishy is going on and that you should pay closer attention.<\/p>\n\n\n\n

Using divergence trading can be useful in spotting a weakening trend or\u00a0reversal\u00a0in\u00a0momentum<\/strong>. Sometimes you can even use it as a signal for a trend to continue!<\/p>\n\n\n\n

There are TWO<\/strong> types of divergence:<\/p>\n\n\n\n

  1. Regular<\/strong><\/li>
  2. Hidden<\/strong><\/li><\/ol>\n\n\n\n

    In this grade, we will teach you how to spot these divergences and how to trade them.<\/p>\n\n\n\n

    We\u2019ll even have a sweet surprise for you at the end.<\/p>\n","protected":false},"excerpt":{"rendered":"

    What if there was a low-risk way to\u00a0sell near the top\u00a0or\u00a0buy near the bottom\u00a0of a\u00a0trend? What if you were already in a long position and you could know ahead of time the perfect place to exit instead of watching your unrealized gains, a.k.a your potential Aston Martin down payment or future Christian Louboutin high heels, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[781],"tags":[],"_links":{"self":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/9697"}],"collection":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/comments?post=9697"}],"version-history":[{"count":0,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/9697\/revisions"}],"wp:attachment":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/media?parent=9697"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/categories?post=9697"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/tags?post=9697"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}