{"id":9699,"date":"2022-10-12T19:57:34","date_gmt":"2022-10-12T19:57:34","guid":{"rendered":"https:\/\/mdr.foobrdigital.com\/?p=9699"},"modified":"2022-10-12T19:57:34","modified_gmt":"2022-10-12T19:57:34","slug":"regular-divergence","status":"publish","type":"post","link":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/2022\/10\/12\/regular-divergence\/","title":{"rendered":"Regular Divergence"},"content":{"rendered":"\n

What is a regular divergence?<\/p>\n\n\n\n

A regular divergence<\/strong> is used as a possible sign for a trend reversal.<\/p>\n\n\n\n

There are two types of regular divergences: bullish<\/strong> and bearish<\/strong>.<\/p>\n\n\n\n

Regular Bullish<\/em> Divergence<\/h2>\n\n\n\n

If the price is making lower lows (LL), but the oscillator is making higher lows (HL)<\/strong>, this is considered to be regular bullish divergence.<\/p>\n\n\n\n

This normally occurs at the end of a DOWNTREND.<\/p>\n\n\n\n

After establishing a second bottom, if the\u00a0oscillator\u00a0fails to make a new low, it is likely that the price will rise, as price and momentum are normally expected to move in line with each other.<\/p>\n\n\n\n

Below is an image that portrays a regular bullish divergence<\/strong>.<\/p>\n\n\n\n

\"Regular<\/a><\/figure>\n\n\n\n

Regular Bearish<\/em> Divergence<\/h2>\n\n\n\n

Now, if the price is making a higher high (HH), but the oscillator is lower high (LH)<\/strong>, then you have regular bearish divergence.<\/p>\n\n\n\n

This type of divergence can be found in an UPTREND.<\/p>\n\n\n\n

After price makes that second high<\/strong>, if the oscillator makes a lower high<\/strong>, then you can probably expect the price to reverse and drop<\/strong>.<\/p>\n\n\n\n

In the image below, we see that the price reverses after making the second top.<\/p>\n\n\n\n

\"Regular<\/a><\/figure>\n\n\n\n

As you can see from the images above, the regular divergence is best used when trying to pick tops and bottoms.<\/strong><\/p>\n\n\n\n

You are looking for an area where the price will stop and reverse<\/strong>.<\/p>\n\n\n\n

The oscillator signals to us that momentum is starting to shift<\/strong> and even though the price has made a higher high (or lower low), chances are that it won\u2019t be sustained.<\/p>\n\n\n\n

Now that you\u2019ve got a hold on regular divergence, it\u2019s time to move and learn about the second type of divergence\u2026.hidden divergence<\/strong>.<\/p>\n\n\n\n

Don\u2019t worry, it\u2019s not super concealed like the\u00a0Chamber of Secrets\u00a0and it\u2019s not that tough to spot.<\/p>\n\n\n\n

The reason it\u2019s called \u201chidden\u201d is that it\u2019s hiding inside the current trend<\/strong>.<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

What is a regular divergence? A regular divergence is used as a possible sign for a trend reversal. There are two types of regular divergences: bullish and bearish. Regular Bullish Divergence If the price is making lower lows (LL), but the oscillator is making higher lows (HL), this is considered to be regular bullish divergence. This normally occurs at the end of a […]<\/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\/9699"}],"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=9699"}],"version-history":[{"count":0,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/9699\/revisions"}],"wp:attachment":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/media?parent=9699"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/categories?post=9699"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/tags?post=9699"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}